Corporate Governance Issues for Central Banks

Abstract

Corporate Governance was ably defined by Sir Adrian Cadbury as the system by which companies are directed and controlled. Corporate Governance is critical to the soundness of financial systems world over. The Central Banks like everybody else needs to step up its corporate Governance practices and ensure that the Financial Institutions that they govern follow suit. This paper covers the following: 1) Why Corporate Governance is critical to Central Banks? 2) What Corporate Governance issues are relevant to Central Banks and the entities that they regulate? 3) What Corporate Governance issues are embedded in the guidelines set by Basel Committee on Banking Supervision?