Corporate Governance in Banking: A Conceptual Framework

Ciancanelli, Penny; González, José Antonio

doi:10.2139/ssrn.253714

Cited by 70 publications

(40 citation statements)

References 23 publications

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“…As discussed in the introduction, corporate governance for financial institutions such as banks exhibit different features due to the opacity and regulatory nature of the industry (Ciancanelli and Gonzalez 2001;Andres and Vallelado 2008;Wilson et al 2010;Mollah and Zaman 2015;Mollah et al 2016). It is therefore important for financial institutions to be well regulated and for effective corporate governance to be implemented as such mechanisms are instrumental in promoting stability of the financial system as well as enhancing social welfare (Grais and Pellegrini 2006b).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve?

2018

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This study examines the quality of governance and religious assurance provided by Shariah boards (SBs) when undertaking the crucial compliance review required in fulfilling the expected ethical and social legitimacy of Islamic banks. To better understand the complex behavioural processes, we explore the governance role of SBs and assess issues related to competence, effectiveness and independence in the light of the newly adopted 2011 Malaysian Shariah Governance Framework (SGF). A series of semi-structured interviews were undertaken with key individuals in two well-established fully-fledged Malaysian Islamic banks. Our findings reveal that the newly implemented SGF has generally brought about some of the benefits hoped for by its regulatory architects. We find the quality of religious assurance to have been enhanced due to the emphasis placed on religious audit giving rise to improved credibility. However, we report the compliance review process to be inadequately undertaken with SBs still excessively reliant on internal officers implying possible independence compromise. We highlight concerns relating to (1) the general level of competency of individual SB members; (2) lack of technical banking and finance knowledge; and (3) SB members generally fulfilling a ceremonial role rather than undertaking vigilant monitoring. Our findings lead us to question the full impact of the new 2011 SGF and query the value and effectiveness of SBs. We make the call for the establishment of external religious auditors to render compliance assurance which could provide the much-needed impetus to improve governance and increase market and stakeholder confidence.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve?

2018

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“…Besides, prior studies by Ciancanelli & Gonzalez, 2000;Iannotta et al, 2007;John et al, 2008) in the case of banking found that the existence of large shareholders increases bank risk taking.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 97%

“…On the other hand, ownership structure is associated with higher risk is also associated with higher returns (Dolde & Knopf, 2006). Ciancanelli and Reyes-Gonzalez (2000) argued that the expropriation problems between shareholders and bank creditors are able to be evaded by capital requirements. The situation is since capital requirement reduce incentives for high risk taking in banking as shareholders are enforced to absorb a greater part of the losses (La Porta et al, (1999);Rime 2001).…”

Section: H1: There Is Positive Relationship Between Ownership Structumentioning

confidence: 99%

Ownership Structure and Risk Taking of Malaysian Commercial Banks: The Moderating Effects of Capital Adequacy Ratio

Jamil¹,

Said²,

Nor

2015

MJSS

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In this research, the direct impact of the three ownership structure (government, institutional and family) on bank risk takings measured by Z-Score is to be investigated. This is based on the Z-Score formulation that is used is based on the context that fits for Malaysia as one of the emerging markets. This research also investigates the impact of the ownership structure with capital adequacy ratio as the moderating element towards bank risk taking as measured by Z-

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“…However they argued that neither system is effective as competition between firms may be more effective in ensuring that the resources are used efficiently. Ciancanelli, Gonzalez (2000) aimed to demonstrate the limitations of the assumption saying that banks conform to the concept of the firm used in Agency Theory. They aimed also to propose an alternative conceptual framework more suitable to its analysis.…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate Governance and Bank Competition Empirical Study on the Jordanian Commercial Banks Listed in Amman Stock Exchange over the Period (2001-2014)

Hashem¹,

Ayoub

Ata³

2015

AJFA

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The purpose of this paper is to identify the effect of corporate governance implementation on the commercial banks' competition in Jordan. Bank competition is tested by using Panzar and Rosse H statistics model and the researchers applied it on the collected data into two periods of time (2001-2007 and 2008-2014), taking into consideration that corporate governance was first implemented in the Jordanian banking sector on 31/12/2007. The researchers used Mann-Whitney Test to compare the results of both time phases. The results showed insignificant effect of corporate governance on bank competition that can be linked to certain reasons including the immaturity of corporate governance's implementation in the Jordanian banking sector, the socio political upheavals that affected Jordan, and the differentiation of bank services between banks led to a more monopolistic behavior. This paper urges other researchers and practitioners to take their role into updating and modifying corporate Asian Journal of Finance & Accounting ISSN 1946-052X 2015 ajfa.macrothink.org 228 governance to positively enhance bank competition taking into account the political turbulences in the neighboring countries and the movement of cash across the region and passing the country.

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Corporate Governance in Banking: A Conceptual Framework

Cited by 70 publications

References 23 publications

Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve?

Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve?

Ownership Structure and Risk Taking of Malaysian Commercial Banks: The Moderating Effects of Capital Adequacy Ratio

Corporate Governance and Bank Competition Empirical Study on the Jordanian Commercial Banks Listed in Amman Stock Exchange over the Period (2001-2014)

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