Answer to Question #233169 in Economics for lacchey

Question

Why is corporate governance in banks more complicated than other types of firms?

Answer 1

Corporate governance in a commercial bank is a way of managing the activities of an individual credit institution by the board of directors and management, affecting the issues of setting corporate goals of the organization, managing current activities taking into account the interests of stakeholders, compliance of corporate activities and behavior with current legislation, as well as protecting the interests of depositors. In other firms, managers have less responsibility for the activities of employees, since there is no responsibility for the money received in the form of deposits.