Effective Systemic Players in the Corporate Governance of Banks: A Closer Look at Supervision

Abstract

Regulation and supervision set a particular corporate governance framework for the banking industry. The specificity of banks, the volatility of financial markets, increased competition and diversification expose banks to risks and challenges. Managing financial risk is a key element for improving corporate governance in the banking sector. The article examines key factors that contribute to ensuring an effective regulatory and supervisory framework. Particularly, it analyses the structure and scope of bank supervision, emphasising the importance of its consolidation in the European context.

Keywords: Supervision, Banks, Bank supervision, Regulation, Corporate governance

JEL Classification: F02, F36, G21, G34