Corporate governance of financial institutions is of paramount importance to the wider economy as well as the financial institutions themselves. There are two key differences that distinguish the governance of financial from that of the nonfinancial firms. Firstly, financial institutions have many more stakeholders than non-financial ones, and the interests of these stakeholders may diverge substantially from one another. Secondly, the business of financial institutions is opaque, increasingly complex and it can shift quickly, which places higher demands to their boards, executives and on key functions such as risk management.
Building on ICGZ’s policy work on the conventional banking sector as well as on Islamic finance, ICGZ has developed services specifically tailored to the needs of the banking sector.