Impact of Corporate Governance on the Performance of Banks
Abstract
Boards of directors are instrumental in influencing banks’ effective performance through corporate governance. They play a pivotal role in making critical decisions based on their skills, expertise knowledge. The composition of the directors in a bank influences the quality in addressing the issues, approaches to decision making. The researcher has considered various variables like return on assets, interest spread, return on assets, profit per employee etc., in identifying the significance of the same on the quality of functionality of the board. No of meetings, outside directors and size of board have impact on corporate governance in public sector commercial banks. However these factors have negative impact and less effective on performance.
Keywords: Board of directors, Return on asset, Bankage and performance. Â
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