Corporate Malpractice in Banks and The Price of Mistakes
18 Pages Posted: 9 Jun 2020
Date Written: May 15, 2020
This paper explores the challenges of existing corporate governance, analyzing the existing policy, ownership structure, and Bank performance. In doing so, this paper attempts to investigate the pattern of ownership composition and ownership concentration scenario towards sponsorship in Banks, the relationship between the ownership structure, firm performance, and, finally, the impact of ownership structure on the bank's performance. Besides, it tries to investigate the leading causes of banks' poor performance, financial scams, Non-Performing Loans (NPLs) regarding the recent crisis understanding the feedback of bankers, depositors, and stakeholders. In this aspect, how corporate governance is practiced through ownership structure as well as how its loan policy is influenced by different ownership patterns is analyzed through a survey result conducted in State-Owned Commercial Banks (SOCBs) and Private Commercial Banks (PCBs) in Bangladesh. Thus, the main features of the existing corporate governance are identified, and some action plans are suggested in this paper to restore sound corporate governance in the banking sector of Bangladesh.
Keywords: Corporate Governance, Malpractice, Non Performing Loans, Ownership Concentration, Capital Erosion, Banks, Bangladesh
JEL Classification: G30, G32
Suggested Citation: Suggested Citation