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:: Volume 13, Issue 1 (Winter 2018) ::
J. Mon. Ec. 2018, 13(1): 31-50 Back to browse issues page
Bank’s Corporate Governance: Quantifying the Effects in Iranian Banking Networks
Esmaeil Ghafari1, Vahid Mohammadrezakhani 1, Hadi Heidari2
1- Shahr Bank
2- Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran
Abstract:   (819 Views)
The most important tool for promoting the bank’s stability and health is the establishment of a standard corporate governance structure for managing the bank's business. Redesigning the relationships between bank management, shareholders and the rest of the bank’s stockholder, including the objectives, the risk and audit indices, and internal control of the bank, is recognized as the foundation of corporate governance. Good corporate governance in a bank increases productivity reduces financial risk and enhances systemic sustainability. Bad corporate governance increases the likelihood of a bank's bankruptcy and creates risks that are likely to contagion the entire banking network. In this paper, considering the importance of the corporate governance in the banking network, and issuing Central Bank circular in 2016, we will review corporate governance requirements, as well as quantify its effective indicators. To determine the corporate governance structure, we have introduced and quantified several important indicators about the board structure, internal control, and auditing of the banks. The period for the analysis of corporate governance in the banking network by indicators is 2011 to 2017. This information is extracted from financial statements or through the official website of the bank network. The results confirm that good corporate governance affects financial statement and precautionary ratios in banks.
Keywords: Corporate Governance, Quantification, Iranian Banking Network, Financial Ratios.
Full-Text [PDF 226 kb]   (587 Downloads)    
Type of Study: Original Research - Empirical | Subject: Microeconomics
Received: 11 Sep 2019 | Accepted: 11 Sep 2019 | Published: 23 Sep 2019
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Ghafari E, Mohammadrezakhani V, Heidari H. Bank’s Corporate Governance: Quantifying the Effects in Iranian Banking Networks. J. Mon. Ec.. 2018; 13 (1) :31-50
URL: http://jme.mbri.ac.ir/article-1-438-en.html

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Volume 13, Issue 1 (Winter 2018) Back to browse issues page
Journal of Money and Economy Journal of Money And Economy
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