Home Free Lab ReportsThere are some several basic reasons for the growing interest in corporate governance

There are some several basic reasons for the growing interest in corporate governance

There are some several basic reasons for the growing interest in corporate governance. Such as, if a bank fails to practice good corporate governance or lack of effective governance within the institution, it may cause insolvency of the bank and that may result in lack of confidence in the financial system of the country, because the confidence of the people in the entire banking system is important for a proper economic development of the country. It is widely argued that effective corporate governance practices are fundamental to gain and maintain the confidence of the people on banking system (BCBS, 2006, February). In Bangladesh, there are about 64 banks of which 4 are state owned commercial banks, 4 development financial institutions, 39 private commercial banks and 9 foreign commercial banks and other are some specialized banks across the country (BB, 2016). In Bangladesh, banks play a vibrant role to ensure sustainable economic growth (having more than six percent gross domestic product) in last few decades. So it is important o know which factors have great influence on financial performance of banks.

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