Ranking the pillars of corporate governance in banks in achieving the stability and health of the banking system

Subject Areas : Financial Economics

hadi torabifar ¹ , seyyed mohammad hadi sobhanian ² , musa shahbazy ³

1 - IPRC
2 - management faculty, Kharazi university
3 - IPRC

Received: 2023-09-15 Accepted : 2024-01-14 Published : 2024-07-10

Keywords: Corporate Governance, Central Bank, Transparency, Stakeholder Rights,

Abstract :

Due to the systemic importance of banks in the economy, the stability and health of banks, which is affected by the processes and frameworks governing the administration of banks, are considered key elements for the stability of the financial system. The realization of corporate governance in banks is considered as one of the most important ways to achieve the stability and health of the banking system. In response to the question, which of the components and elements of corporate governance, including the board of directors, executive board, risk management, auditing, service compensation and disclosure and transparency, is more important in achieving the stability and health of the banking system, in this article with Using the multi-criteria decision modeling approach, various elements and components of corporate governance in the banking system have been ranked in terms of importance in achieving the stability and health of the banking system. The results of the research show that two components of the decision-making and monitoring component include "non-executive and independence of the board members" and "adopting policies related to the identification and control of conflicts of interest" and the component of "creating the necessary infrastructure to create transparency..." from the disclosure component and Transparency with relative weights of 0.107, 0.089, 0.073, respectively, took the first three ranks of corporate governance components in achieving banking stability and health. The results of this research can be considered in determining the regulatory priorities of the central bank and modifying the structures and processes governing the banking system.

References:

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