Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran
International Journal of Business and Economics Research
Volume 3, Issue 2, April 2014, Pages: 108-117
Received: Apr. 15, 2014;
Accepted: May 8, 2014;
Published: May 20, 2014
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Bita Mashayekhi, Accounting Department, Faculty of Management, University of Tehran, Tehran, Iran
Alemeh Yazdanian, Accounting Department, Faculty of Management, University of Tehran, Tehran, Iran
Farzaneh Jalali, Accounting Department, Faculty of Management, University of Tehran, Tehran, Iran
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Given the vital role of banks and other financial institutions in financial and economic stability, and also their great vulnerability to the potential imperfections of corporate governance and the need to maintain the depositors' funds and the stakeholders’ interests, the issue of corporate governance and eliminating its weaknesses and failures are extremely important in banking industry. In recent financial scandals and economic crises which banks and other financial institutions have had a leading role because of malfunctioning of their corporate governance mechanisms. Furthermore, in 2011, the occurrence of a massive financial embezzlement and existence of enormous deferred bank accounts in Iran banking system implies that there is a serious failure in banks' corporate governance for the experts in this field.Therefore this study attempts to prepare information about the current state of corporate governance in Iran banks and compares it with that of prosperous big banks in other parts of the world. Additionally, it is going to investigate the weak points of corporate governance in Iran banks in order to present an appropriate model for them. It also should be noted that we review all available related documents in Iran banks and interview the managers and experts to obtain valid feedbacks in this regard. Then, we review successful and unsuccessful experiences of famous international banks such as Bank of America, Toronto-Dominion Bank, J. P. Morgan, and HSBC, and their corporate governance structures to extract and model them. By comparing this model with those belonging to Iran banks we can realize almost any weakness existing in Iran banks. Finally we suggest an appropriate model for Iran banks to improve the efficiency and effectiveness of the mechanism of their corporate governance.
Corporate Governance, Banking Industry, Iranian Banks, Model for Corporate Governance of Banks, Big International Banks, Financial Crisis
To cite this article
Toward an Appropriate Model for Corporate Governance in Banking Industry- Case Study of Iran, International Journal of Business and Economics Research.
Vol. 3, No. 2,
2014, pp. 108-117.
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