Learning Objectives:

  • Understand the principles of corporate governance in banking.

  • Analyse the role of boards of directors and risk committees.

  • Assess the impact of governance on financial stability.

6.1 The Importance of Corporate Governance

The UWE module covers “corporate governance in banks- the way in which banks are directed and controlled, risk assessment and management, broader corporate social responsibilities” . The Macquarie University module covers “corporate culture and corporate governance” . The Keele module includes “the importance of corporate governance in the financial sector” .

Key governance principles:

  • Board Oversight: Clear separation of responsibilities between the board and management.

  • Transparency: Open and honest communication with stakeholders.

  • Accountability: Clear lines of responsibility.

  • Risk Oversight: A robust risk management framework.

6.2 The Role of the Board

The EM Normandie module covers “governance structures in financial institutions (e.g. board of directors, executive management)” . The Financial Academy programme covers “Board of Directors’ Responsibilities Regarding Compliance” . Key board responsibilities include:

  • Setting strategy and risk appetite.

  • Overseeing management.

  • Ensuring compliance with laws and regulations.

  • Appointing and overseeing the external auditor.

6.3 Culture and Conduct

The UCD module explores “the emergence of an emphasis on organisational culture as a regulatory tool” . The Macquarie University module requires students to “assess the impact of corporate culture and social responsibility on ethical behaviour within organisations” . A strong ethical culture is essential for preventing misconduct and maintaining trust.

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