Definition and concept of corporate governance in

bank perspective

• Corporate governance is the process and structure used to direct

• Manage the business and affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long term shareholder value, whilst taking account the interests of other stakeholders

Report on Corporate

Governance 2002

• Set of relationships between managers of the entity, the board of directors, shareholders and others parties.

• Provide structure which the objectives are set, and mornitoring performance are determined

OECD principles

From bank perspective, corporate governance involve activities• Set corporate objectives • Run day to day operations of the business• Consider stakeholder’s interest• Align corporate activities and behaviours with the expectation that banks will operate in safe and sound manner, and in compliance with applicable laws and regulations

• Protect depositors’s interest