Problem
In July 2015, the Basel Committee provided a revised principles on corporate governance for the safe and sound functioning of banks. The revised principles provide a framework within which banks and supervisors should operate to achieve robust and transparent risk management and decision-making and, in doing so, promote public confidence and uphold the safety and soundness of the banking system.
Requirement:
Critically evaluate the importance of the revised principles on Corporate Governance as set out by the Basel Committee (July 2015) in promoting effective corporate governance for the safe and sound functioning of banks. (30 Marks)
Your answer should clearly elaborate on the following points:
•Introduction: What do you understand by the term corporate governance?
•The main objective of corporate governance in the banking sector.
•The 13 Principles of corporate governance of the revised Basel principles.
•Briefly, if any, state the limitations on the applicability of these revised corporate governance principles in banks.
•Conclusion:Why is effective corporate governance important for banks?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.