3. INTRODUCTION
• set of process a entity's culture, policies, laws and
institutional value
• objective: enhance transparency and transparency
enhances accountability
• important for financial sectors
• lack of transparency and disclosure
• number of cases of failure, fraud and malpractices
4. OBJECTIVES
• Bad corporate governance, the major
challenge in the banking sector.
• To know about the principles of corporate
governance in banking sector of Nepal,
• To evaluate the challenges the banking
industries are facing to implement the
corporate governance in Nepal.
5. LIMITATION
• based on secondary sources rather than
primary sources.
• based only on the limited information
obtained in the internet.
6. REVIEW
• important in Banking industries in less developed
countries
• minimize the chances of corruption, malpractices,
financial frauds and misconduct of management
• too many BFIs to pop up, created a BFI bubble followed
by intense
• tendency to seek short term, quick returns against long
term viability and sustainability is leading the BFIs in a
path of self-destruction
• most of the BOD and top managers make crucial
decisions in their own favor
7. • OECD focus on the following critical elements:
– Board members should be qualified for their position
– The board of directors should approve and oversee the bank’s
strategic objectives and corporate values that are communicated
throughout the banking organization.
– The board of directors should set and enforce clear lines of
responsibility throughout the organization.
– The bank should be governed in a transparent manner.
– The board should ensure that compensation policies and practices are
consistent with the bank’s corporate culture, long-term objectives and
strategy, and control environment
8. FINDINGS
• Nepal needs fewer but stronger BFIs with sound
corporate governance.
• financial institutions to balance between growth,
profitability and innovation, and the long-run stability of
institutions.
• challenge to innovate the new banking product and able
to compete globally
• Fresh funds have not been generated hence retaining
depositors money remains a challenge.
• disclose the information transparently seems to be
inadequate