BANKING CORPORATE GOVERNANCE, AN EXTRA ADMINISTRATION AND MANAGEMENT OF CREDIT INSTITUTIONS

Banking corporate governance is a way of management and control of credit institutions, which form the banking system. This can be achieved through a two-tier or unitary system, involving all liability factors interested in efficient monetary management offered as banking products and services by credit institutions. In order to achieve the established goals regarding the overall activity of credit institutions, the compliance and risk management functions and the audit and internal managerial controlling activity, are monitored by banking corporate governance. The activities covered by the credit institutions management are continuously audited in order to increase economic efficiency and establish an interactive investment climate. The main purpose of banking corporate governance is to reduce the negative effects of present and future financial crises. For the strengthening and stability of the banking system, new standards are monitored through banking corporate governance, in order to improve risk management, increase transparency requirements on capital adequacy, liquidity requirements and leverage effect.