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Volume : II, Issue : X, November - 2012 ISSUES OFCORPORATE GOVERNANCE: BANKING SECTOR ASHISH NATHWANI AND NIRAV R. VYAS DOI : 10.9780/22307850, Published By : Laxmi Book Publication Abstract : Corporate ethics has been much in the news in recent years, and the margin for
an executive slip-up these days is narrow. Anything from a private company breach like
Satyam; International Sports Event like Common Wealth Games or allocation of 2G
licenses to private players have raised an alarm for Indians to be the watch-dog. The
Cadbury Report generated a lot of interest in India. The issue of corporate governance
was studied in depth and dealt with by the Confederation of Indian Industries (CII),
Associated Chamber of Commerce and Industry (ASSOCHAM) and Securities and
Exchange Board of India (SEBI). Co-operative banks as corporate entities possess
certain unique characteristics. Ethical issues in the financial services industry affect
everyone, because even if you don't work in the field, you're a consumer of the services.
Prudential norms in terms of income recognition, asset classification, and
capital adequacy have been well assimilated by the Indian banking system. Beginning
2005, banks will be required to set aside capital charge for market risk on their trading
portfolio of government investments, which was earlier virtually exempt from market
risk requirement.
ALM and Risk Management Practices – At the initiative of the regulators, banks
were quickly required to address the need for Asset Liability Management followed by
risk management practices. The real success of our financial sector reforms will
however depend primarily on the organisational effectiveness of the banks, including
cooperative banks, for which initiatives will have to come from the banks themselves.
With elements of good corporate governance, sound investment policy, appropriate
internal control systems, better credit risk management, focus on newly-emerging
business areas like micro finance, commitment to better customer service, adequate
automation and proactive policies on house-keeping issues, co-operative banks will
definitely be able to grapple with these challenges and convert them into opportunities. Keywords : Article : Cite This Article : ASHISH NATHWANI AND NIRAV R. VYAS, (2012). ISSUES OFCORPORATE GOVERNANCE: BANKING SECTOR. Indian Streams Research Journal, Vol. II, Issue. X, DOI : 10.9780/22307850, http://oldisrj.lbp.world/UploadedData/1558.pdf References : - Jayanth Rama Varma; Corporate Governance in India: Disciplining the Dominant Shareholder; presented at IIM-A December 1997.
- Nell Minow; Shareholder Initiatives in 1995: An Activists Perspective; Lens papers October 1996.
- Robert A. G. Monks; Corporate Governance In The Twenty-First Century: A Preliminary Outline; Stanford International Conference, 1994.
- Fernando A.C., Corporate Governance, Pearson Education, Second Edition, New-Delhi, 2011
- Murthy C. S. V., Business Ethics & Corporate Governance, Himalaya Publishing House, Mumbai, 2012
- www.oecd.org/.../0,3699,en_2649_37439_1_1_1_1_37439,00.html
- www.bankofbaroda.com/corpgovernance.asp
- www.in.kpmg.com/tl_files/pictures/cg%20survey%20report.pdf
- www.icicigroupcompanies.com/corporate_governance.html
- www.wcfcg.net/
- www.change-leaders.com/Corporate-Governance-Conferences.html
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