International Principles and Practice of Corporate Governance: A Study on Banking Industry in Bangladesh

Abstract

The paper endeavors to show the level of adherence of corporate governance practice to international principles regarding banking industry of Bangladesh. The study used random selected 15 banks in Bangladesh and the research design was explanatory nature. The research used the percentage and average calculation, and finding the gap between the international principles and practices of corporate governance. International corporate governance principles are not fully mentioning the corporate governance. It also mentions the organizational, cultural, legal, industry practice, political and social environment factors. The international corporate governance principles had nine principles. Bangladesh banking industry implements the almost seven principles based on findings. The shareholder return and the operational performance the international principles were the focus board attention on optimizing over time the returns to shareholders. BSEC (Bangladesh Security Exchange Commission) corporate governance notifications and the independent auditor’s certificate on compliance with conditions of corporate governance guidelines issues to the shareholder of the particular bank. The published annual report w experience our everyday excellence through the trio of phenomena -‘Transparency’, ‘Accountability’ and ‘Ethics’; the first is mirrored in the fact-sheet of our banking operations while the second persists in strong compliance of regulations and laws.