Open AccessPosted Content
The Corporate Governance of Banks
Jonathan R. Macey,Maureen O'Hara +1 more
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 soread more
Citations
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Journal ArticleDOI
Bank concentration, competition, and crises: First results
TL;DR: In this paper, the impact of national bank concentration, bank regulations, and national institutions on the likelihood of a country suffering a systemic banking crisis was studied using data on 69 countries from 1980 to 1997.
Book
Rethinking Bank Regulation: Till Angels Govern
TL;DR: In this article, the authors present a review of bank regulation and its effect on bank performance and its role in the development of banks around the world, focusing on two approaches to bank regulation: public interest approach and private interest approach.
Journal ArticleDOI
Corporate governance in banking: The role of the board of directors
TL;DR: The authors used a sample of large international commercial banks to test hypotheses on the dual role of boards of directors and found an inverted U-shaped relation between bank performance and board size, and between the proportion of non-executive directors and performance.
Journal ArticleDOI
Risk Management, Corporate Governance, and Bank Performance in the Financial Crisis
TL;DR: This article investigated whether risk management-related corporate governance mechanisms, such as the presence of a chief risk officer (CRO) in a bank's executive board and whether the CRO reports to the CEO or directly to the board of directors, are associated with a better bank performance during the financial crisis of 2007/2008.
Posted Content
Strong Boards, CEO Power and Bank Risk-Taking
TL;DR: This paper examined the relevance of bank board structure on bank risk-taking using a sample of 212 large US bank holding companies over 1997-2004 (1,534 observations), finding that strong bank boards (boards reflecting more of bank shareholders interest) particularly small and less restrictive boards positively affect bank risk taking.
References
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Deposit Insurance Reform: State of the Debate
TL;DR: The role and functions of deposit insurance and the nature of the moral-hazard and principal/agent problems inherent in deposit insurance are discussed in this article, and specific proposals to reform deposit insurance, grouped according to whether they increase depositors' risk, increase bank owners' costs, rely on increased use of market mechanisms to ensure prompt regulatory action, or restrict the range of banking activity financed by insured deposits.
Journal Article
Market Discipline by Depositors: A Summary of the Theoretical and Empirical Arguments
TL;DR: Garten as discussed by the authors pointed out the importance of determining whether market discipline by depositors will work in practice as it is supposed to work in theory before using the premise of depositor discipline as the basis of bank failure.