Corporate Governance in European Banking

2011 ◽  
Author(s):  
Francesca Arnaboldi ◽  
Barbara Casu
Keyword(s):  
Corporate Governance ◽  
European Banking

scholarly journals Developments in the european banking industry

2009 ◽  
Author(s):  
Μαρία-Ελένη Αγοράκη
Keyword(s):  
Corporate Governance ◽  
Banking Industry ◽  
Board Structure ◽  
Governance System ◽  
Firm Financial Performance ◽  
Governance Challenges ◽  
The Board Of Directors ◽  
European Banking ◽  
European Banks ◽  
And Performance

Corporate governance has become a leading topic of research, considering its importance as an implement for transparency in financial markets and corporations. On the other hand, the role of the banks is fundamental in any economy that urges for strong corporate governance. Banks are “special” financial institutions posing unique corporate governance challenges. However, very little attention has been paid to the corporate governance of banks. Recent scandals in the financial sector have brought corporate governance at the forefront of academic and supervisory attention. Banks’ versatile role in the economic system has caught regulatory and supervisory interest around the world in an effort to inspire high quality corporate governance standards. Board structure, in the sense of board size and composition, and its impact on corporate performance constitutes an indispensable and, at the same time, prevalent theme of the corporate governance discussion. This thesis examines corporate governance issues in the European banking industry. More specifically, it examines the relationship between board structure and performance, on a sample of 57 large European banks, over the period 2002-2006. The board structure mechanisms applied, are the size of the board of directors and the percentage of non-executives on the board. In addition, this study employs different measures of firm financial performance both market-based and accounting based. Control variables for the bank size and risk as well as for the different corporate governance system are included in the models. The empirical analysis also incorporates a number of bank-specific variables. […]

scholarly journals HOW DO YOU DISCLOSE? SOME EVIDENCE ON IT GOVERNANCE AND PERFORMANCE IN EUROPEAN BANKING SYSTEM

2019 ◽  
Vol 07 (01) ◽  
pp. 1940002
Author(s):  
IDA CLAUDIA PANETTA ◽  
SABRINA LEO ◽  
FABRIZIO SANTOBONI ◽  
GIANFRANCO VENTO
Keyword(s):  
Corporate Governance ◽  
Banking System ◽  
It Governance ◽  
Public Disclosure ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
European Banking ◽  
And Performance ◽  
Governance Transparency ◽  
Governance Disclosure

This paper examines the evolution of the attention paid by a sample of EU banks on IT governance. We propose an analysis based on IT public disclosure to contribute to the less explored strand of literature on IT governance transparency. We explore if the attention paid by banks to this topic has grown after the crises and if the greater importance ascribed to IT governance is due to the Supervisors’ pressure or the value-driven decisions. In particular, we test if, as for other corporate governance mechanisms, there is a verifiable linkage between IT governance (disclosure) and banks’ performance.

An Analysis of Large Bank Corporate Governance and Litigation Expenses

2018 ◽  
Keyword(s):  
Corporate Governance ◽  
Banking Industry ◽  
The Past ◽  
Good Corporate Governance ◽  
Total Capital ◽  
The Us ◽  
European Banking ◽  
Banking Institutions ◽  
European Banks ◽  
Legal Costs

Over the past decade, the banking industry has incurred over $300 billion in litigation and related legal costs. We analyzed the litigation expense data and corporate governance data of seven US and six European banking institutions. The 13 banking intuitions incurred nearly $200 billion in litigation expenses, roughly two-thirds of the total litigation expense incurred by the entire banking industry. We compared corporate governance metrics to the litigation expenses for the same 13 banking institutions. There are four main findings: First, litigation expenses of large banks have been on the decline since 2015; second, although the US banks incurred much greater litigation expenses during the 2010–2014 period, their litigation expenses have declined much more quickly than those of the European banks during the 2015–2017 period; third, litigation expenses incurred by European banks have been much higher than those of US banks when compared with bank total revenues and total capital; fourth, for US banks there is a strong correlation between improved corporate governance and lower litigation costs. However, for European banks it appears that the comply-or-explain approach to corporate governance muddies the link between good corporate governance and lower litigation costs.

scholarly journals The impact of the European Banking Union’s Single Supervisory Mechanism on corporate governance practices in European banks

2018 ◽  
Vol 13 (2) ◽  
pp. 164-177 ◽  
Author(s):  
Udo Braendle
Keyword(s):  
Corporate Governance ◽  
Banking System ◽  
Banking Union ◽  
Single Supervisory Mechanism ◽  
European Banking Union ◽  
Regulatory Changes ◽  
Governance Practices ◽  
European Banking ◽  
European Banks ◽  
The Impact

Weak corporate governance in financial institutions has been a contributing factor of the financial crisis. The topic has, therefore, become the key priorities of banking supervision, because one of the takeaways was that. The article gives an overview about the newly established European Banking Union and about its structure focusing on the first pillar, the Single Supervisory Mechanism (SSM). In a second step, the focus is laid on the recent regulatory changes regarding corporate governance, the related supervisory practice and implications for European banks. Overall, the conducted changes in the regulatory framework, especially regarding corporate governance, seem to meet the objective of ensuring safety and soundness of the European banking system. Room for improvement is found regarding proportionality and transparency of the supervisory practices as well as its influence on banks’ profitability.

scholarly journals Performance of European banks: Crisis, corporate governance and convergence

2017 ◽  
Vol 1 (2) ◽  
pp. 43-49 ◽  
Author(s):  
Themistokles Lazarides
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Geographic Location ◽  
Governance System ◽  
Macroeconomic Factors ◽  
Time Period ◽  
Wide Debate ◽  
Capital Ratios ◽  
European Banking ◽  
Asset Quality

Financial performance as a phenomenon in the European banking sector is an issue of a wide debate. The paper is seeking to detect the variables that have an impact on performance. Ratios and stratification variables are used in panel data regressions and the time period of the study is from 2004 to 2013. The results show that performance (ROAA) is dependent on four categories of ratios (Asset quality, Capital ratios/risk and solvency ratios, Operations ratios, Liquidity ratios). Corporate governance system and the geographic location (political and macroeconomic factors) of the bank seem to effect significantly the factors that have an impact on performance.

scholarly journals Mergers, liquidations and bankruptcies in the European banking sector

2015 ◽  
Vol 5 (2) ◽  
pp. 52-70 ◽  
Author(s):  
Themistokles Lazarides ◽  
Evaggelos Drimpetas ◽  
George Kyriazopoulosr
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Banking Sector ◽  
Negative Impact ◽  
Econometric Models ◽  
Capital Adequacy ◽  
Econometric Methods ◽  
Positive Performance ◽  
European Banking ◽  
Loan Growth

The inactivity of banks may be the result of a number of events, such as merger & acquisition (M&A), liquidation, default-bankruptcy, etc. All these phenomena of inactivity contribute to the same result, the reform of the European banking sector and they may have the same causes. The paper will address the issue of inactivity and will try to detect its causes using econometric models. Six groups of indicators are examined: performance, size, ownership, corporate governance, capital adequacy or capital structure and loan growth. Three econometric methods (Probit, Logit, OLS) have been used to create a system that predicts inactivity. The results of the econometric models show that from the six groups of indicators, four have been found to be statistically important (performance, size, ownership, corporate governance). Two have a negative impact (ownership, corporate governance) on the probability of inactivity and two positive (performance, size). The paper’s value and innovation is that it has given a systemic approach to find indicators of inactivity and it has excluded two groups of indicators as non-statistically important (capital adequacy or capital structure and growth).

scholarly journals CORPORATE GOVERNANCE IN THE EUROPEAN BANKING SECTOR: SOME REMARKS ON DIVERSITY

2019 ◽  
Vol 07 (01) ◽  
pp. 1975001
Author(s):  
FRANCESCA ARNABOLDI
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Board Members ◽  
The European Union ◽  
Board Diversity ◽  
Governance Practices ◽  
Challenging Environment ◽  
European Banking ◽  
The Eu ◽  
Critical Aspects

This work discusses some of the critical aspects of bank corporate governance in the European Union. Enhancing sound corporate governance practices has become one of the major concerns in the supervisory authority’s agenda and one of the critical features to evaluate banks’ stability. The global rethinking about corporate governance rules has translated into a stronger focus on board diversity for EU banks. The existing literature and sound corporate governance practices support the view that different types of board members may bring different capabilities to their banks. Even if board diversity may add complexity to the functioning of the board, the advantages it brings are of utmost importance in the challenging environment banks are facing. This work highlights the fragmentation of the EU corporate governance rules as banks have to comply with 27 sets of different regulations and codes. This complexity should not be ignored, as member states’ specificities, legal systems, and a more general openness to diversity influence the effect reforms may have on banks’ performance and stability.

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