How Can Financial Supervisors Improve the Effectiveness of Corporate Governance?

How Can Financial Supervisors Improve the Effectiveness of Corporate Governance?

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 beh...

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Bibliographic Details
Main Authors: Palmer, John, Hoong, Chang Su
Format: Brief
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
AUTHORITIES
AUTHORITY
BANK
BANKING
BANKING SUPERVISION
BANKS
BOARDS OF DIRECTORS
BUSINESS PRACTICES
CAPITAL ADEQUACY
COMMUNICATION
COMMUNITY
COMPETITION
CONSTITUTION
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE REFORM
CRITERIA
DECISION-MAKING
DECISION-MAKING PROCESS
DEPOSITS
DEVELOPING COUNTRIES
ECONOMIC CRISIS
EMERGING MARKETS
ENTERPRISES
EXECUTIVE BODIES
EXPOSURES
EXTERNAL AUDITORS
FEDERAL RESERVE
FEDERAL RESERVE BANK
FINANCE
FINANCE CORPORATION
FINANCIAL CRISES
FINANCIAL CRISIS
FINANCIAL INFORMATION
FINANCIAL INSTITUTION
FINANCIAL INSTITUTIONS
FINANCIAL INTERMEDIARIES
FINANCIAL MARKET
FINANCIAL MARKETS
FINANCIAL REGULATION
FINANCIAL SECTOR
FINANCIAL SECTORS
FINANCIAL SERVICES
FINANCIAL STABILITY
FINANCIAL SYSTEMS
FUTURE
GOOD GOVERNANCE
GOVERNANCE FAILURES
GOVERNANCE ISSUES
GOVERNANCE PERFORMANCE
GOVERNANCE REFORM
GOVERNMENT
GOVERNMENT ACTION
GOVERNMENT GUARANTEES
GOVERNMENT INTERVENTION
GRANTS
GROWTH
GUARANTEES
HEDGE FUNDS
INDEPENDENCE
INDUSTRY
INFORMATION FLOWS
INSTITUTIONAL INVESTORS
INSURANCE
INSURANCE INDUSTRY
INSURANCE POLICIES
INTEREST
INTEREST RATES
INTERESTS
INTERNAL AUDIT
INTERNAL CONTROL
INTERNATIONAL BANKING
INTERNATIONAL BANKING STANDARDS
INTERNATIONAL FINANCE
INVESTMENTS
JURISDICTION
JURISDICTIONS
LAW
LEGISLATION
LIQUIDITY
LOCAL INSTITUTIONS
MANDATES
MONETARY AUTHORITY
MORAL HAZARD
NEW PRODUCTS
OFFSITE MONITORING
OPERATIONAL RISKS
OVERSIGHT
PARTICIPATION
PERFORMANCE STANDARDS
POLITICIANS
PRICE
PRINCIPAL
PROJECTS
PUBLIC SECTOR
QUALITY OF GOVERNANCE
REGULATION
REGULATOR
REGULATORS
REGULATORY AUTHORITY
REGULATORY CAPITAL
REPRESENTATIVES
RESPONSIBILITY
RISK
RISK MANAGEMENT
RISK TAKING
SHARE
SHAREHOLDER
SHAREHOLDERS
STATE
STATE INTERVENTION
STATES
STRATEGIES
SUBSIDIARY
SUPERVISORY AUTHORITIES
TRANSPARENCY
TREASURY
Online Access:http://documents.worldbank.org/curated/en/2010/01/13134353/can-financial-supervisors-improve-effectiveness-corporate-governance
http://hdl.handle.net/10986/11099
Description
Summary: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.

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