Business Ethics and Corporate Governance, Second Edition

CORPORATE GOVERNANCE IN THE BANKING SECTOR

Around this time, some bank failures in the West underlined the necessity of close monitoring of the banking system. Weakness in the banking system of a country can threaten the financial stability, both within the country and globally. The need to improve the strength of financial systems has attracted growing international concern. A communication issued at the close of the Lyon G-7 Summit in June 1996 called for action in this vital area. Several official bodies including the Basel Committee on Banking Supervision established by the Central Bank Governors of the Group of Ten Countries in 1975, the Bank for International Settlements, the International Monetary Fund and the World Bank have recently ...