Corporate Governance Practices in Banking Sector: A Comparative Study of Selected Banks in India
Nisha Phour
INTRODUCTION
Corporate governance did not exist prior to the 1990s, and few people believe that it is necessary for the corporate sector. The need for corporate governance arises from the interests of the state, shareholders, and society. After the late 1990s, this idea gained traction.
Corporate governance aided firms in establishing control and directing their business practices. Corporate governance in the banking sector is completely different from corporate governance in any other company because banks operate differently due to the nature of business, the complexity and uniqueness of banks' balance sheets, and the requirement for protection of its weakest party in the flow, as well as many other risks by systematic failure. Banks conduct various types of transactions. As a result, we have no idea how many different types of actual assets a bank has. Outsiders find it difficult to estimate the value of assets and the quality of assets on a bank's balance sheet.
Furthermore, it is an important feature of business and other countries.
have already prioritised corporate governance in their business for decades now. In India, corporate governance was introduced after 1990, especially after the government of India realised that it needed major economic reforms and a capable government to deal with market players and minimise risk. Corporate governance is something that firms create in order to achieve their market objectives and protect themselves from failures. The structure of corporate governance is linked with firms' internal authorities such as the board of directors and management, as well as external authorities such as shareholders and other stakeholders of the company. It is very beneficial in the long run to ensure capable internal controls, better management, and visionary productive measures to ensure effective succession plans.
