Global Governance Services

Thu, 2 Feb 2012

The stability of global financial markets came into the spotlight as a result of the financial crisis of 2007–2010. Many experts argue that corporate governance and, in particular, poor risk management practices at systemically important financial institutions were among the leading factors that allowed the crisis to develop.The crisis has been an opportunity to reexamine corporate governance practices in banks and other financial institutions, and to learn from past mistakes. Banks in Southeast Europe (SEE), whose governance is seen as an important aspect of their successful integration into the European Union and the global family of banks, have also come under scrutiny. A new Policy Brief emanates from the reflections of a High Level Policy Group composed of banks and regulators from Southeast Europe (SEE) and international experts who met inBelgrade in December 2009and inLondon in June of 2011.  The recommendations build to a large extent upon the BIS Basel Committee on Banking Supervision (BCBS)Principles for Enhancing Corporate Governance(2010) and also upon the BISEnhancing Corporate Governance for Banking Organizations(2006). The Policy Brief is intended to complement them, and help apply international best practice to the specific circumstances and needs of SEE region. For example, SEE has very high foreign ownership of the banking system, the equities markets are small and emergent, and almost all banks are closely held.  The brief can be downloaded at: http://www.gcgf.org/ifcext/cgf.nsf/Content/SEE_Banks_Feature

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