Khalid, Ahmed M. and Hanif, Muhammad N. (2005): Corporate Governance for Banks in Pakistan: Recent Developments and Regional Comparisons. Published in: CMER Working Paper (2005)
Download (202kB) | Preview
The emerging economies in the South Asian region have embarked on a bold reform process to develop the banking sector. This development has improved the transparency and accountability of the banking sector because these countries focused on ‘best practice’ corporate governance for banks. In view of a rapidly developing market with a slow pace of information dissemination, adverse selection and moral hazard problems are likely to be on the rise and may need a mechanism to train and discipline bank management. It was, therefore timely for the central banks in the region to introduce a ‘best practice’ for the banking system as a whole. This study provides a survey of recent developments in corporate governance of the banking sector in Pakistan and a comparison of similar developments in two other regional economies, namely, India and Bangladesh. In addition to a theoretical discussion on this issue, we also provide an overview of the banking sector restructuring and highlighting important features of the codes of corporate governance established by central banks in the sample countries. In conclusion, we present a comparison of the major differences in these measures across countries and comment on the pace of these developments.
|Item Type:||MPRA Paper|
|Original Title:||Corporate Governance for Banks in Pakistan: Recent Developments and Regional Comparisons|
|Keywords:||Corporate Governance, Banks, Pakistan|
|Subjects:||G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
|Depositing User:||Nadim Hanif|
|Date Deposited:||24. Jun 2008 01:31|
|Last Modified:||07. Jan 2014 18:37|
Adams, Renee and Mehran, Hamid (2003). Is Corporate Governance Different for Bank Holding Company, FRBNY Economic Policy Review, 9(1), 123 – 42.
Aiff, Mohamed and Ahmed M. Khalid (2005). Liberalization and Growth in Asia: 21st Century Challenges, Cheltenham: Edward Elgar Publishing Company.
Aiff, Mohamed and Ahmed M. Khalid (2000). Liberalization, Growth and Asian Financial Crisis: Lessons for Developing and Transitional Economies in Asia, Cheltenham: Edward Elgar Publishing Company.
Asia Trade Hub (2000). Banking Sector in Bangladesh. http://www.asiatradehub.com (Retrieved in February, 2005).
Bangladesh Bank (2003), BRPD Circular No. 12, Dhaka: Banking Regulation and Policy Department.
Bangladesh Bank (2005). http://banglapedi.search.com.bd (Retrieved in February 2005).
Bangladesh Research (2002). Swinging Banking: Not Very Promising, Dhaka: Asset and Investment Management Services of Bangladesh Limited.
Beck, T., and R. Levine (2004). Legal Institutions and Financial Development, NBER Working Paper No.10417, Cambridge, Massachusetts.
Bies, Susan S. (2002). Bank Performance and Corporate Governance, BIS Review, 55.
Bollard, Alan (2003). Corporate Governance in the Financial Sector, Speech to the Annual Meeting of the Institute Directors in the New Zealand, Christchurch, April 7.
Bushman, Robert M., and Abbie J. Smith (2003). Transparency, Financial Accounting Information and Corporate Governance, FRBNY Economic Policy Review, 9(1), 65 – 87.
Carter, Michael, F. (2004). Opening Remarks at the National Conference on Corporate Governance Trends in India, by Michael F. Carter, Country Director, India, the World Bank Group, India Habitat Centre, Jacaranda, October 18.
Chakrabarti, R. (2005). Corporate Governance in India – Evaluation and Challenges, Atlanta: Georgia Institute of Technology, Social Science Research Network.
Demirguc-Kunt, Asli, and Enrica Detragiache (1997). The Determinants of Banking Crises: Evidence from Developing and Developed Countries, IMF Working Paper 97/106, Washington D.C: International Monetary Fund.
Ernst and Young-Ford Rhodes Sidat Hyder (2005). Handbook of Key Regulations for Commercial Banks in Pakistan, Ernst & Young-Ford Rhodes Sidat Hyder, A member of Ernst and Young International, Karachi.
Furfine, C.H. (2001). Banks as Monitors of other Banks: Evidence from the Overnight Federal Funds Market, Journal of Business, 74, 33 – 57.
Garcia-Herrero, Alicia (1997). Banking Crises in Latin America in the 1990s: Lessons from Argentina, Paraguay, and Venezuela, IMF Working Paper 97/140, Washington D.C: International Monetary Fund.
Goldstein, Morris, and Philip Turner (1996). Banking Crises in Emerging Economies: Origins and Policy Options, BIS Economic Papers No. 46, Basle: Bank for International Settlements, Monetary and Economics Department.
Hanif, M. Nadeem (2003). Restructuring of Financial Sector in Pakistan. Journal of the Institute of Bankers, 70(1), 43-74.
Hussain, Ishrat (2003). Regulatory Strategy of the State Bank of Pakistan, Comments of the paper delivered by Mohsin S. Khan as Quaid-i-Azam lecture at the 18th Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, January 13-15.
Kamesam, Vepa (2002), Co-operative Banks in India: Strengthening through Corporate Governance, Inaugural address by Shri Vepa Kamesam, Deputy Governor, Reserve Bank of India, at the National Convention of Urban Co-operative banks, Mumbai, 5 July.
Khalid, Ahmed M. and Lina Irawati (2004). Banking Crises: Prediction, Prescription and Policy Responses. Paper presented at the 2004 Australasian Meeting of the Econometric Society, Melbourne.
La Porta, Rafael, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert W. Vishny (2000). Investor Protection and Corporate Governance. Journal of Financial Economics, 58, 3 – 27.
La Porta, Rafael, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert W. Vishny (1998), Law and Finance. Journal of Political Economy, 106, 1113 – 1155.
La Porta, Rafael, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert W. Vishny (1997), Legal Determinants of External Finance. Journal of Finance, 52, 1131 – 1150.
Leeladhar, V (2004). Corporate Governance in Banks. Speech delivered by Shri V. Leeladhar, Deputy Governor, Reserve Bank of India at the “Sheth Shantaram Mangesh Kulkarni Memorial Lecture” organised by the North Kanara G.S.B. Co-op Bank Ltd. on November 27.
Levine, R. (2003). The Corporate Governance of Banks, Discussion Paper No. 3, Washington D.C: Global Corporate Governance Forum.
Levine, R., (1997). Financial Development and Economic Growth: Views and Agenda. Journal of Economic Literature, 35, 688 – 726.
Macey, Jonathan R. and O’ Hara, Maureen (2003). The Corporate Governance of Banks, FRBNY Economic Policy Review, 9, 91 – 107.
Macey, Jonathon R. and G. P. Miller (1995). Corporate Governance and Banking: A Comparative Examination of Germany, Japan and United States. Stanford Law Review, 48, 73 – 112.
Mehran, Hamid, (2003). Introduction to Corporate Governance in Banks. FRBNY Economic Policy Review, 9(1), 1 – 3.
Modigliani, Franco, Merton Miller (1958). The Cost of Capital, Corporation Finance, and the Theory of Investment. American Economic Review, 48, 261 – 297.
Mohan, Rakesh (2004). Ownership and Governance in Private Sector Banks in India. Reserve Bank of India Bulletin. October, 879 – 84.
Morgan, D. (2002). Rating Banks: Risk and Uncertainty in an Opaque Industry. American Economic Review, 92, 874 – 88.
OECD (Organization for Economic Cooperation and Development) (1999). OECD Principles of Corporate Governance. Issued by Ad hoc Task Force on Corporate Governance, Organization for Economic Cooperation and Development. http://www.oecd.org (Retrieved in February 2005).
Prowse, S. (1997). The Corporate Governance System in Banking: What Do We Know? Banca Nazionale Del Lavoro Quarterly Review, 50, 11 – 40.
Reserve Bank of India (2005). Guidelines on Ownership and Governance of Private Sector Banks. http://www.rbi.org (Retrived on February 28, 2005).
Sachs, Jeffrey, Aaron Tornell, and Andres Velasco (1996). Financial Crises in Emerging Markets: The Lessons from 1995. NBER Working Paper No.5576, Cambridge, Massachusetts: National Bureau of Economic Research.
Securities and Exchange Commission of Pakistan (2004). Directors and Secretaries Guide, SEC Guide Series, Karachi.
Shleifer, A., and Vishny, R.W. (1997). A Survey of Corporate Governance. Journal of Finance, 52, 737 – 783.
State Bank of Pakistan (2003a). Pakistan: Financial Sector Assessment 1990-2000, Karachi.
State Bank of Pakistan (2003b). Pakistan: Financial Sector Assessment 2001-2002, Karachi.
State Bank of Pakistan (2003c). Handbook of Corporate Governance. Karachi: State Bank of Pakistan.
State Bank of Pakistan (2004). Draft Guidelines on Internal Controls, Karachi: State Bank of Pakistan.
Udeshi, Kishori J. (2005). The Pursuit of Financial Stability, Speech by Ms. Kishori J. Udesh, Deputy Governor, Reserve Bank of India at the 7th Money and Finance Conference organized by Indira Gandhi Institute of Development Research (IGIDR), Mumbai, February 10.