Learning Objectives:

  • Understand corporate governance structures specific to banks.

  • Analyse the role and composition of the board of directors.

  • Assess internal and external corporate control mechanisms.

5.1 Corporate Governance in Banking

The University of Leeds module includes “bank governance” as a core topic . The SOAS Banking Strategy module requires an analysis of “the composition and role of boards of directors, and the relation between boards and management” . The Aydın Adnan Menderes University course covers “banks are required to carry corporate governance principles, board of directors-audit committee, general manager and general manager assistance” .

5.2 The Board of Directors and Audit Committee

Key governance structures include:

  • Board of Directors: Responsible for setting strategy, overseeing management, and ensuring accountability.

  • Audit Committee: Responsible for overseeing financial reporting, internal controls, and the external audit.

  • Remuneration Committee: Responsible for setting executive compensation.

  • Risk Committee: Responsible for overseeing risk management.

5.3 Internal vs. External Corporate Control Mechanisms

The SOAS module examines “internal and external corporate control mechanisms” . Internal controls include board oversight, internal audit, and risk management functions. External controls include regulatory supervision, market discipline, and shareholder activism.

 

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