Corporate Governance within Financial Institutions: Asset or Liability?

Abstract

Solid corporate governance of the financial institutions is of a vital concern not only to the institutions themselves but also for the entire financial system. After four years of financial turbulences, the issue of corporate governance is more important than never especially for financial institutions who take on a significant role in the process of financial intermediation as they are considered to be important players in the financial system, especially in the Euro Area. The main purpose of this paper is to set out a framework for analyzing and thinking about the core meaning, the advantages and the direction of specific practices regarding corporate governance in a company in general, and specifically in financial institutions.