Setting The Rules Of The Game: Corporate Governance And The Banking Sector
As the financial crisis morphs into a sovereign debt crisis, the corporate governance of banks is back under the spotlight. Whose interests should bank boards be serving? And who should be monitoring what banks do? A year ago, the Walker Review of corporate governance in financial institutions in the United Kingdom took the view that the primary role of boards was to look after the interests of shareholders. More recently, both the Basel Committee on Banking Supervision and the European Commission have proposed broadening the role of boards to consideration of the interests of depositors and other stakeholders.