Strengthening the Governance and Performance of State-Owned Financial Institutions

Corporate governance arrangements define the responsibilities, authorities and accountabilities of owners, boards of directors, and executive managers of a company. Good corporate governance is as important for state financial institutions as for private sector companies. Many of the problems that commonly afflict state financial institutions can be associated with, if not attributed directly to, weaknesses in corporate governance. This note draws on guidelines recently published by the OECD and the Basel Committee for Banking Supervision to compile a comprehensive corporate governance evaluation framework relevant to state-owned commercial and development finance institutions. It highlights aspects of this framework that are considered to be of particular importance to state financial institutions by citing innovative practices in a number of countries. Finally, it presents a detailed case study of the governance arrangements in place at the Development Bank of Southern Africa.

Bibliographic Details

Main Author:	Scott, David H.
Language:	English
Published:	World Bank, Washington, DC 2007-08
Subjects:	ACCOUNTABILITY, ACQUISITIONS, ARTICLES OF INCORPORATION, AUDIT COMMITTEE, AUDIT COMMITTEES, AUDITS, AUTHORITY, AUTHORIZATION, BALANCE SHEET, BALANCE SHEETS, BANKRUPTCY, BANKRUPTCY LAW, BANKS, BOARD MEETING, BOARD MEETINGS, BOARD MEMBER, BOARD MEMBERS, BOARDS OF DIRECTORS, BONDS, BUSINESS DEVELOPMENT, BUSINESS PRACTICE, BUSINESS PRACTICES, CASH FLOW, CASH FLOW STATEMENTS, CENTRAL BANK, CENTRAL GOVERNMENT, CENTRALIZATION, CEO, CEOS, CHARTER, CHIEF EXECUTIVE, CODE OF CONDUCT, COMMERCIAL BANK, COMMERCIAL BANKING, COMMERCIAL BANKS, COMPANIES ACT, COMPANY, COMPANY LAW, CONFIDENTIAL INFORMATION, CONFLICTS OF INTEREST, CONFLICTS OF INTERESTS, CONSTITUTION, CONSTITUTIONAL ARRANGEMENTS, CONTINGENT LIABILITIES, CONTINGENT LIABILITY, CORE BUSINESS, CORPORATE ENTITY, CORPORATE FINANCE, CORPORATE GOVERNANCE, CORPORATE GOVERNANCE ARRANGEMENT, CORPORATE GOVERNANCE ARRANGEMENTS, CORPORATE PERFORMANCE, CORPORATE PRACTICES, CORPORATION, CORPORATIONS, COST OF FUNDS, COST STRUCTURE, DEBT, DEBTS, DECISION-MAKING, DEPOSIT, DEPOSIT-TAKING INSTITUTIONS, DEPOSITS, DEVELOPMENT FINANCE, DISCLOSURE, DISCLOSURE OF INFORMATION, DISCLOSURE REQUIREMENTS, DIVIDEND, DIVIDEND PAYMENT, DIVIDEND PAYMENTS, DIVIDEND POLICIES, DIVIDENDS, DUE DILIGENCE, ECONOMIC DEVELOPMENT, EQUITY INVESTMENT, EQUITY INVESTMENTS, EXCHANGE RATE, FIDUCIARY RESPONSIBILITIES, FINANCE CORPORATION, FINANCIAL ANALYSIS, FINANCIAL CONTROL, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL MARKET, FINANCIAL MARKET DEVELOPMENT, FINANCIAL MARKETS, FINANCIAL PERFORMANCE, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SERVICES, FINANCIAL SERVICES INDUSTRY, FINANCIAL STATEMENTS, FINANCIAL SUPPORT, FINANCIAL SUSTAINABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCING ARRANGEMENTS, FOREIGN EXCHANGE, GOOD CORPORATE GOVERNANCE, GOOD GOVERNANCE, GOVERNANCE PRACTICES, GOVERNMENT ADMINISTRATION, GOVERNMENT DEPARTMENT, GOVERNMENT INTERVENTION, GOVERNMENT OFFICIALS, GOVERNMENT OWNERSHIP, GOVERNMENT POLICY, GOVERNMENT'S POLICY, HOUSING FINANCE, HUMAN RESOURCE, HUMAN RESOURCE DEVELOPMENT, INCOME, INCORPORATED, INDIVIDUALS, INDUSTRIAL POLICY, INFORMATION FLOWS, INFORMATION SYSTEMS, INFRASTRUCTURE PROJECTS, INSTITUTIONAL ARRANGEMENT, INSTITUTIONAL FOUNDATIONS, INTEREST RATE, INTERNAL AUDIT, INTERNAL AUDIT FUNCTION, INTERNAL CONTROL, INTERNAL CONTROLS, INTERNATIONAL ACCOUNTING STANDARDS, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INVESTOR PROTECTION, LEGAL ENTITIES, LEGAL FORM, LEGAL REQUIREMENTS, LEGISLATION, LEGISLATURE, LEGISLATURES, LEGITIMACY, LIMITED, LOCAL GOVERNMENT, LONG-TERM FINANCE, LTD., MANAGERS, MARKET DISTORTIONS, MINISTERS, MINISTRY OF FINANCE, MOTIVATIONS, MUNICIPALITIES, OPERATIONAL RISK, OUTPUTS, PARTICIPATION OF GOVERNMENT OFFICIALS, PENSION FUNDS, PERFORMANCE MEASURE, PERFORMANCE MEASURES, PERSONS, POOR GOVERNANCE, PORTFOLIO, PRESIDENCY, PRICE RISKS, PRIVATE CAPITAL, PRIVATE COMPANIES, PRIVATE COMPANY, PRIVATE EQUITY, PRIVATE FINANCIAL INSTITUTIONS, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTOR PARTICIPATION, PRIVATIZATION, PROXY, PUBLIC COMPANIES, PUBLIC FINANCE, PUBLIC FUNDING, PUBLIC FUNDS, PUBLIC INSTITUTIONS, PUBLIC PENSION, PUBLIC POLICY, PUBLIC SECTOR, PUBLIC SECTOR FINANCE, REGULATORY OVERSIGHT, REGULATORY REGIME, REGULATORY REQUIREMENTS, REPRESENTATIVES, RISK MANAGEMENT, RISK MANAGEMENT COMMITTEE, RISK MANAGEMENT POLICIES, RISK MANAGEMENT SYSTEMS, SALE OF SECURITIES, SAVINGS, SECURITIES, SECURITIES LAWS, SEPARATION OF OWNERSHIP, SHAREHOLDER, SHAREHOLDERS, SHAREHOLDERS MEETINGS, STAKEHOLDERS, STATE FINANCE, STATE INSTITUTIONS, STATE INTERVENTION, STATE OWNERSHIP, STATE PROPERTY, STATE-OWNED ENTERPRISES, STOCK EXCHANGE, SUBSIDIARIES, SUBSIDIARY, TAKEOVER, TAX, TAX LAW, TECHNICAL ASSISTANCE, TRADE UNIONS, TRANSPARENCY, TREASURY,
Online Access:	http://documents.worldbank.org/curated/en/2007/08/8092434/strengthening-governance-performance-state-owned-financial-institutions https://hdl.handle.net/10986/7305
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