Introduction
Given the important financial intermediation role of banks in an economy, their high degree of sensitivity to potential difficulties arising from ineffective corporate governance and the need to safeguard depositors' funds, corporate governance for banking organisations is of great importance to the international financial system and merits targeted supervisory guidance. The Basel Committee on Banking Supervision (the Committee) published guidance in 1999 to assist banking supervisors in promoti the adoption of sound corporate governance practices by bankingng organisations in their countries. This guidance drew from principles of corporate governance that were published earlier that year by the Organisation for Economic Co-operation and Development (OECD) with the purpose of assisting governments in their efforts to evaluate and improve their frameworks for corporate governance and to provide guidance for financial market regulators and participants in financial markets.
Since the publication of those documents, issues related to corporate governance have continued to attract considerable national and international attention in light of a number of high-profile breakdowns in corporate governance. In response to requests to assess the OECD principles in view of such developments, the OECD published revised corporate governance principles in 2004.
See full Document.
Also see BIS Press Release.
Feb 13
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