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Assessing effectiveness and compliance of banking boards

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Abstract

Purpose – This paper aims to develop a model to assess the effectiveness and compliance of bank boards, taking into account their unique characteristics, financial industry standards and regulations. Design/methodology/approach – The literature on the roles and effectiveness of boards and directors in the financial industry is reviewed. Findings – The main finding in the literature suggests that evaluating the effectiveness of a board must include characteristics of the entire board as well as individual contributions of directors. Practical implications – Banking boards, more than in the past, must proactively evaluate their effectiveness and compliance with existing rules. Originality/value – The paper proposes a model for assessing the effectiveness and compliance of boards and directors of banking organizations, considering their characteristics, financial industry standards and regulations.

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