Publication: How Can Financial Supervisors Improve the Effectiveness of Corporate Governance?
Date
2010-01
ISSN
Published
2010-01
Author(s)
Palmer, John
Hoong, Chang Su
Abstract
New initiatives are under way to improve
governance, including guidelines from supervisory
standard-setting bodies such as the Basel Committee on
banking supervision. These initiatives should help, but more
is needed to change board culture and behavior. Financial
supervisors have an important stake in ensuring sound
corporate governance as a strong underpinning for effective
supervision. This paper suggests measures that financial
supervisors can take to improve governance in regulated
financial institutions. Although governance performance is
inherently difficult to assess, supervisors who make
extensive use of onsite inspections and actively engage
boards and board committees will have a greater chance of
improving the quality of governance performance in the
financial institutions for which they are responsible.
Citation
“Palmer, John; Hoong, Chang Su. 2010. How Can Financial Supervisors Improve the Effectiveness of Corporate Governance?. Private Sector Opinion; No. 18. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/b0567d02-0abb-5bc0-b9a2-3d0ef435efef License: CC BY-NC-ND 3.0 IGO.”