The Big Bank Theory. Into the Bank Corporate Governance Literature

Abstract

Corporate Governance of banks is not only important it also unique. Sound bank Corporate Governance is a crucial element for promoting a more resilient financial system and sustaining economic growth.

A systematic literature review is conducted on a sample of articles published on peer-reviewed academic journals. Balancing theoretical and empirical contributions, findings show that academic research on bank Corporate Governance is mainly focused on risks potentially faced by banks and their performance capabilities. This paper examines the developments of bank Corporate Governance literature and tries to shed some light on the causality dilemma between theory and practice, by investigating whether or not the progress of regulation and supervision in the area of bank governance follows academic findings or vice versa.

Keywords: Banks, Corporate Governance, Board of Directors, Risk management, Compensation, Ownership

JEL Classification: E52, E58, G14, G21