Show Summary Details
Banking Law and Regulation

Banking Law and Regulation (1st edn)

Iris H-Y Chiu and Joanna Wilson
Page of

Printed from Oxford Law Trove. Under the terms of the licence agreement, an individual user may print out a single article for personal use (for details see Privacy Policy and Legal Notice).

date: 25 April 2024

p. 54112. Regulating the governance, structures, and incentives at bankslocked

p. 54112. Regulating the governance, structures, and incentives at bankslocked

  • Iris ChiuIris ChiuProfessor of Company Law and Financial Regulation, University College London
  •  and Joanna WilsonJoanna WilsonLecturer in Commercial Law, University of Sussex

Abstract

This chapter assesses how regulation addresses sub-optimal internal organisation and governance at banks in order to change behaviour. The Basel Committee defines the role of internal control at banks to be for three purposes: to assist in achieving profitability and performance, to ensure the reliability and integrity of financial information relating to the bank, and to assist in external compliance with regulations. Meanwhile, corporate governance may be defined as ‘a system by which companies are directed or controlled’. As a framework for determining exercise of power, decision-making, and accountability, corporate governance is important in the shaping of an overall organisational culture. The chapter also considers the regulation of bankersʼ remuneration. Although such regulation affects bankers individually, there are aspects of ‘collective’ policy in remuneration regulation that seek to control organisational freedom in giving rewards, as well as aspects that affect individual incentives.

You do not currently have access to this chapter

Sign in

Please sign in to access the full content.

Subscribe

Access to the full content requires a subscription