The Impact of Corporate Governance on the Performance of Banking Sector

The purpose of this study is to examine the current practices of corporate governance in banking industry. Corporate governance is the system by which companies are directed and controlled. Furthermore, a bank serves several conflicting interests, from equity holders, to borrowers or depositors and good governance is important for balancing those interests. Good corporate governance is critical for Banking Industry because with good corporate governance, the bank could preventive the banks from financial fraud that could lead to financial distress and bankruptcy. Moreover, the purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the banks. Corporate governance is the system by which companies are directed and controlled.