Financial Regulation and Supervision in Corporate Governance of Banks
JOURNAL OF CORPORATION LAW 41, no. 3 (2016): 707-26.
20 Pages Posted: 4 Sep 2015 Last revised: 25 May 2017
Date Written: April 2016
This Essay discusses and analyzes the role of financial regulation and the state’s interference through financial supervision with corporate governance of banks from economic and political perspectives. It suggests that the limits of corporate law and financial regulation cause the state to use financial supervision as the effective tool for such interference. This Essay also argues that the stakeholder model cannot legitimize the state’s intrusion into the corporate governance of private banks through such non-legal measures as financial supervision. It looks into the alternative mechanisms in corporate law and financial regulation for the enhancement of corporate governance of banks from a comparative perspective.
JEL Classification: K34
Suggested Citation: Suggested Citation