Board Conduct in Banks

61 Pages Posted: 9 Apr 2021

See all articles by Samanvaya Agarwal

Samanvaya Agarwal

affiliation not provided to SSRN

Saipriya Kamath

London School of Economics & Political Science (LSE) - Department of Accounting and Finance

Krishnamurthy Subramanian

Indian School of Business (ISB), Hyderabad

Prasanna

Indian School of Business

Date Written: April 9, 2021

Abstract

We examine private and confidential minutes of board meetings of a majority of Indian banks, and offer insights into the issues tabled and discussed in bank boards. We find that risk issues account for only 10% of the issues tabled with regulation and compliance accounting for the most (41%) followed by business strategy (31%). Only 18% of the issues are deliberated in detail. Examining the minutes of risk management committee meetings, we find that only 31% of the issues tabled are forward-looking. Using a simple model, we infer that bank boards under-invest in risk and over-invest in regulation and compliance.

Keywords: Banks, Bank Failure, Board of directors, Board minutes, Corporate governance,

JEL Classification: G30, L20

Suggested Citation

Agarwal, Samanvaya and Kamath, Saipriya and Subramanian, Krishnamurthy and Tantri, Prasanna, Board Conduct in Banks (April 9, 2021). Available at SSRN: https://ssrn.com/abstract=3822953 or http://dx.doi.org/10.2139/ssrn.3822953

Samanvaya Agarwal

affiliation not provided to SSRN

Saipriya Kamath (Contact Author)

London School of Economics & Political Science (LSE) - Department of Accounting and Finance ( email )

United Kingdom

Krishnamurthy Subramanian

Indian School of Business (ISB), Hyderabad ( email )

Hyderabad, Gachibowli 500 019
India

Prasanna Tantri

Indian School of Business ( email )

Hyderabad, Gachibowli 500 019
India
9160099959 (Phone)
500032 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
23
Abstract Views
233
PlumX Metrics