Esprit Rock

There are several fundamental causes for the growing interest in corporate governance

There are several fundamental causes for the growing interest in corporate governance. If a bank remains failure to practice appropriate corporate governance within the institution, it may make the bank insolvent and that may result in lack of confidence in the financial system of the country. The confidence of the people in the whole banking system is necessary for a proper economic improvement of the country. Effective corporate governance practices are principal to achieve and maintain the confidence of the people on banking industry (BCBS, 2006, February). There are about 64 banks from which 4 are commercial banks that owned by the states, 4 development financial institutions, 39 non-government commercial banks and 9 foreign commercial banks and other are the specialized banks over the country (BB, 2016). In Bangladesh, banks play a significant role to assure sustainable economic development (having more than six percent gross domestic product) in last few decades. So it is necessary to know which factors have great influence on financial performance of banking industry.