Financial Services
Bank governance and oversight
The financial crisis highlighted that for many banks, governance had fallen short. Change was necessary. Hearing the call to action, bank directors, executives, and supervisors have begun a journey toward strengthened governance. Supervisors are pushing for deeper board engagement and working to understand governance effectiveness. Boards are engaging more on strategy, risk, capital and talent, and have improved their ability to oversee the overall control and risk environment. And management understands its duty to support board oversight.
Boards remain at the center of governance. Bank directors have a major role to play in helping their institutions navigate the challenging regulatory, political, and economic waters that lie ahead. Never passive observers, directors today are even more involved in overseeing and guiding management, contributing materially to the creation of trustworthy institutions that perform well over the long term.
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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