Financial Services
Bank governance and oversight
Bank directors have a major role to play in helping their institutions navigate the challenging regulatory, political, and economic waters that lie ahead. They have never been passive observers, but today they are even more involved in overseeing and guiding management. Directors contribute materially to the creation of highly ethical institutions that perform well over the long term.
However, the financial crisis highlighted that for many boards, oversight had fallen short of what was required. Change was necessary. Bank directors heard the call to action and have strengthened governance. They are engaging more on strategy, risk, capital, and talent, and have improved their ability to oversee the overall control and risk environment.
Bank directors have proactively engaged key external stakeholders, notably regulators and long-term shareholders. Increasingly, this communication is two-way: directors listening and reacting to external views, while helping shape their constituents' expectations. All parties are working towards the common goal of a strong international economy bolstered by a thriving, well-functioning banking sector.
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