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Corporate governance and banks: what have we learned from the financial crisis?

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  • Hamid Mehran
  • Alan Morrison
  • Joel Shapiro

Abstract

Recent academic work and policy analysis give insight into the governance problems exposed by the financial crisis and suggest possible solutions. We begin this paper by explaining why governance of banks differs from governance of nonfinancial firms. We then look at four areas of governance: executive compensation, boards, risk management, and market discipline. We discuss promising solutions and areas where further research is needed.

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File URL: http://www.newyorkfed.org/research/staff_reports/sr502.html
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Bibliographic Info

Paper provided by Federal Reserve Bank of New York in its series Staff Reports with number 502.

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Date of creation: 2011
Date of revision:
Handle: RePEc:fip:fednsr:502

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Related research

Keywords: Corporate governance ; Executives - Salaries ; Financial risk management ; Bank management;

References

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Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The role of relative market power in compensation negotiations
    by Jonas Feit in Conscience Warrior on 2013-05-30 13:04:00
  2. Links for the (two) week(s) - (31 May and) 7 June 2013
    by Jonas Feit in Conscience Warrior on 2013-06-09 19:32:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Berger, Allen N. & Bouwman, Christa H.S., 2013. "How does capital affect bank performance during financial crises?," Journal of Financial Economics, Elsevier, vol. 109(1), pages 146-176.
  2. Elisabetta Gualandri & Enzo Mangone & Aldo Stanziale, 2011. "Internal Corporate Governance and the Financial Crisis: Lessons for Banks,Regulators and Supervisors," Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) 11111, Universita di Modena e Reggio Emilia, Facoltà di Economia "Marco Biagi".
  3. Gaul, Lewis & Palvia, Ajay, 2013. "Are regulatory management evaluations informative about bank accounting returns and risk?," Journal of Economics and Business, Elsevier, vol. 66(C), pages 1-21.
  4. Acharya, Viral V & Mehran, Hamid & Schuermann, Til & Thakor, Anjan, 2012. "Robust Capital Regulation," CEPR Discussion Papers 8792, C.E.P.R. Discussion Papers.
  5. Piti Disyatat, 2012. "Discussion of Property Prices and Bank Risk-taking," RBA Annual Conference Volume, in: Alexandra Heath & Frank Packer & Callan Windsor (ed.), Property Markets and Financial Stability Reserve Bank of Australia.

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