Code of Corporate Governance for Banks

CENTRAL BANK OF NIGERIA CODE OF CORPORATE GOVERNANCE FOR BANKS IN NIGERIA POST CONSOLIDATION (Effective Date: April 3, 2006) MARCH 1, 2006 1 1 PART I: claim FOR A NEW CODE OF CORPORATE GOVERNANCE 1.0 introduction 1.1 Financial scandals around the world and the recent collapse of study corporate institutions in the USA and Europe have brought to the fore, one time again, the need for the practice of good corporate disposal, which is a form by which corporations are governed and controlled with a view to increasing shareholder value and meeting the expectations of the other stakeholders. For the financial application, the retention of human beings confidence through the enthronement of good corporate governance remains of utmost importance given the role of the industry in the mobilization of funds, the allocation of credit to the needy sectors of the economy, the payment and settlement system and the implementation of monetary policy. 1.2 1.3 In Nigeria, a su rvey, by the Securities and Exchange Commission (SEC) reported in a publication in April 2003, showed that corporate governance was at a rudimentary stage, as only about 40% of quoted companies, including banks, had recognise codes of corporate governance in place.

Specifically for the financial sector, hapless corporate governance was identified as one of the study factors in virtually all known instances of a financial institutions distress in the country. 1.4 Yet, the on-going industry desegregation is likely to pose additional corporate governance challenges arising from integration of processes, IT and culture. Research had shown that two-thirds of mergers, world-wide, fail due to inability to integrate force out and systems as well as due to irreconcilable differences in corporate culture and management, resulting in Board and Management squabbles. In addition, the emergence of mega banks in the postconsolidation era is bound to task the skills and competencies of Boards and Managements in... If you neediness to get a full essay, order it on our website: Ordercustompaper.com

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