Corporate governance practices of Mercantile Bank Limited

Abstract

As a part of Internship program for Business Graduate students, each of the students needs an organizational attachment. Being attached with Mercantile Bank Limited, this study has been undertaken to fulfill the internship purpose. During a specified period of internship, the students are required to prepare a report on the organization from where he has completed his internship. Mercantile Bank Limited is a private commercial bank, which is operating its business last 15 years. The bank has achieved a tremendous success during this short span of time and established itself as a progressive and dynamic financial institution in the country. The bank is widely acclaimed by the business community, starting from small businessmen/entrepreneurs to the big traders/industrial group, including the top rated corporate clients who hold pragmatic outlook and financial solution. Mainly secondary data have been used to gather information which is necessary to prepare this study. Corporate Governance is based on several critical principles. They include an independent, active and engaged Board of Directors which has the skill to properly evaluate and oversee the business process, business and financial performance, internal control and compliance structure and direct management on strategic and policy issues. On the other hand, the Board has to ensure that the management headed by Chief Executive Officer (CEO) fully discharge their day to day administrative responsibilities prescribed by BB and the Board itself and necessarily refrain themselves from micro management of the management affairs.MBL, recognizes the importance of good corporate governance as a major factor in enhancing the efficiency of the organization. The Bank therefore seeks to encourage the conduct of its business to be in line with the principles of good corporate governance, which form a basis for sustainable growth.