Business Ethics and Corporate Governance, Second Edition

BANKS AND CORPORATE GOVERNANCE

Banks in India as corporates are as much required to be governed under corporate governance norms as other firms. Additionally, they are also covered under the internationally followed Basel Committee norms about which details are provided in the chapter on banking and corporate governance.

The Basel Committee norms relate only to commercial banks and financial institutions. Banking and financial institutions stand to benefit only if corporate governance is accepted universally by industry and business, whom banks and financial institutions have to interact and deal with. SEBI only partially attends to this need.

Realizing the importance of corporate governance to banks which are highly leveraged entities whose ...