Impact of corporate governance on bank's performance in Bangladesh

Abstract

Bank administration has ended up as an unmistakable issue over the decades ever since the collapse of numerous financial institutions amid and after worldwide monetary emergency. Subsequently, controllers in creating nations like Bangladesh have ended up being more concerned about the financial health and governance of banking industry. One of the main issue in failing of financial performance of the banking industry in Bangladesh is the destitute state of corporate administration. A good corporate body can ensure a good financial economy in the country. Since, banks are one of the major industry that contributes to the GDP growth of our country, it is very essential for the regulators as well as the government to ensure a sound corporate governance existence in the commercial bank's governing body. To demonstrate the idea that has noteworthy affect on the bank's money related execution in Bangladesh, the report has gone through some statistical and empirical analysis. The result has shown a tremendous fact. The findings of the analysis shows that without a proper governing body, which means a good corporate governance, a bank's performance hinders. As a result an economic slump occurs in the country. The analysis also justifies the fact that there is a prodigious relationship between the factors of corporate governance and a bank's performance. To sum up, it is necessary for a country to put extra effort to constitute a proper guidance and regulations for corporate governance with a view to achieve greater performance in financial sector.