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The Corporate Governance of Banks

TLDR
In this paper, the authors argue that commercial banks pose unique corporate governance problems for managers and regulators, as well as for claimants on the banks' cash flows, such as investors and depositors.
Abstract
The study argues that commercial banks pose unique corporate governance problems for managers and regulators, as well as for claimants on the banks' cash flows, such as investors and depositors The authors support the general principle that fiduciary duties should be owed exclusively to shareholders However, in the special case of banks, they contend that the scope of the fiduciary duties and obligations of officers and directors should be broadened to include creditors In particular, the authors call on bank directors to take solvency risk explicitly and systematically into account when making decisions or else face personal liability for failure to do so

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Female leadership and bank performance in Latin America

TL;DR: This paper examined the relationship between gender diversity in corporate boards and executive positions and bank risk and performance in Latin America and found that banks with a higher proportion of female executives tend to have lower Z-scores than male-led banks.
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The Professional Development of Employees in Banks of Pakistan: A comparative study of public and private banks in Punjab Pakistan

TL;DR: In this paper, the authors identified twenty elements constituting professional developments of employees of banks in Punjab Pakistan and analyzed the magnitude of influence of each constituent elements of professional development in different functional areas of banking operations.
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Does Corporate Govenance Matter in Indian Banking? Policy Implication on the Performance

TL;DR: In this article, the authors have found statistically significant correlations of governance with important financial variables on expected lines have been found for banking in India and strong impact of governance has also been observed for all the variables in public sector banks and in all scheduled commercial banks.
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Corporate governance and banks: How justified is the match?

TL;DR: In this paper, the authors critically assess the arguments used to pervade these divergences in operational activities and conclude that parts of particular bank governance legislation and regulation misses appropriate justification, should be, at best, part of a general corporate governance code, and other mechanisms, like stringent capital requirements, are more adequate.
References
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Book

The Modern Corporation and Private Property

TL;DR: Weidenbaum and Jensen as mentioned in this paper reviewed the impact of developments not fully anticipated by Berle and Means, such as the rise of the service sector, and the significant role played by institutional investors in the owner/manager equation.
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Bank Runs, Deposit Insurance, and Liquidity

TL;DR: The authors showed that bank deposit contracts can provide allocations superior to those of exchange markets, offering an explanation of how banks subject to runs can attract deposits, and showed that there are circumstances when government provision of deposit insurance can produce superior contracts.
Journal ArticleDOI

Agency Problems and the Theory of the Firm

TL;DR: In this article, the authors explain how the separation of security ownership and control, typical of large corporations, can be an efficient form of economic organization, and set aside the presumption that a corporation has owners in any meaningful sense.
Book

A Monetary History of the United States

TL;DR: The long-awaited monetary history of the United States by Friedman and Schwartz is in every sense of the term a monumental scholarly achievement as discussed by the authors, and the treatment of innumerable issues, large and small, have been brought to bear on the solution of complex and subtle economic issues.
Journal Article

Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure

TL;DR: In this paper, the authors integrate elements from the theory of agency, property rights and finance to develop a theory of the ownership structure of the firm and define the concept of agency costs, show its relationship to the separation and control issue, investigate the nature of the agency costs generated by the existence of debt and outside equity, demonstrate who bears costs and why and investigate the Pareto optimality of their existence.
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