Corporate Governance and Banks' Turmoils: Assessment of Shareholders Response
Cooperate governance is seen as the mechanism of control for harnessing the ugly face of bank turmoil’s. It can persuade, induce complete and motivate corporate managements in order to eliminate the corporate deviance and turmoil in the banks. It is a system and power for decision making, risk monitoring, setting of objectives and policies and the assessment of overall bank internal and external performance and control optimization. The study made use of secondary data obtained from 5 commercial banks on the assessment of their corporate board members. We subjected their responses on a 6-point Likert scale measurement into a Pearson Product Moment Correlation Test as well as t-test. The result of the findings revealed that good corporate governance of banks will reduced mistrust between shareholders and management but may not reduce the overall bank turmoil. This is because of other variables associated with bank turmoil’s. The study recommends that corporate governance can only prevent banking turmoil’s with adequate implementation of code of corporate governance for best practices in Banks, understanding and diligent discharged of responsibility in a prudent and transparent manner. Finally the study recommends that our banks board of directors and management team should be abreast with adequate, relevant and needed knowledge, experiences, professional skills, competences in order to remove in total the bank turmoils. DOI: 10.5901/jesr.2013.v3n8p39