1.1 Introduction
Globalization of financial markets and fears of financial instability have brought the issue of the corporate governance into forefront of the policy discussions. In an increasingly deregulated policy environment, the big corporate failures have raised the need for implementing competent corporate governance practices. The recent financial crises in different countries have verified how the lack of good governance practices in the financial institutions can lead to a crisis in the system leaving long-term consequences to the. Among the financial institutions, the corporate governance of banks has received very little attention only. In developing countries, banks have a dominant position in the financial systems and a discussion on corporate governance of banks required special attention.
1.2 Objectives of the Paper
The main objective of this paper is to assess the corporate governance practices in the banking sector of Bangladesh. The study targets to identify the practices in different CG issues e.g. level of commitment to good corporate governance, effective board practices, control environment and processes, information disclosure and transparency, and shareholders rights. More specifically, the objectives of the study are to:
• Investigate the commitment to implement good corporate governance practices among the banks in Bangladesh. • Know the role, duties and responsibilities, composition, structure, practices, and performance evaluation and training of the members of Board of Directors • Identify the control environment and processes of the banking sector of Bangladesh • Determine the level of disclosures, the accuracy and timeline of the financial position, condition and prospects, and other non-financial information of the banks in Bangladesh. • Be familiar with the
References: 2. Ahmed Mamtaz Uddin and Yusuf Mohammad Abu, (November-December 2005), “Corporate Governance: Bangladesh Perspective”, Vol.33 No 6, the Cost and Management 3 4. Bangladesh Enterprise Institute (2003), “A Comparative Analysis of Corporate Governance in South Asia: Charting a Roadmap for Bangladesh”, Dhaka: Bangladesh Enterprise Institute 5 6. Bank for International Settlements, Basel Committee on Banking Supervision, (March 2010), “Principles for enhancing corporate governance”, (Consultative Document) 7. Davis Ellen, (February 2010), “OECD to update corporate governance priorities for Asia’s bank” 8 12. International Corporate Governance Network, (2010),”Corporate Governance practices in the banking sector: Bangladesh Perspective” United Kingdom: ICGN Secretariat 12