Global policymakers are launching an examination of the state of corporate governance regimes for financial institutions in the wake of the global financial crisis of 2008-09.
The Financial Stability Board (FSB) announced today that it is examining the implementation of the G20/OECD corporate governance principles and how they have been applied to publicly listed, regulated financial institutions. The Basel-based financial monitoring body says it aims to identify effective practices, assess progress on adopting the principles, and root out gaps and weaknesses.
“Effective corporate governance is critical to the proper functioning of the financial sector and financial stability more generally. In particular, it plays a key role in the resiliency of financial institutions and mitigating systemic risks,” the FSB says. “Recent experience has provided ample evidence of the impact that corporate governance failures can have on financial institutions and markets.”
The FSB is surveying national authorities, and plans to publish a report on the results in early 2017.
The FSB also is seeking feedback from financial institutions and industry and consumer associations on subjects such as the design of corporate governance frameworks; how these frameworks should protect shareholders’ rights and recognize the rights of other stakeholders; and how governance can ensure timely, accurate disclosure by financial firms. Comments are due by September 9.