A good piece here by Laeven and Ratnovski whom write persuasively in favour of various governance features to promote systemic safety objectives, such as higher capital levels, regulation over compensation, improved risk management, and a degree of stakeholder control. Yet they acknowledge potential issues over "creditor control" in distressed situations as a preference over gambling for resurrection as a means to extract additional shareholder value.
However, at the end of the day, governance is at best a "helping hand" to robust regulation according to the authors. Check out the following link for this piece: http://www.voxeu.org/article/corporate-governance-banks-and-financial-stability.
Source: Corporate governance of banks and financial stability | vox. Laeven and Ratnovski, 2014.
However, at the end of the day, governance is at best a "helping hand" to robust regulation according to the authors. Check out the following link for this piece: http://www.voxeu.org/article/corporate-governance-banks-and-financial-stability.
Source: Corporate governance of banks and financial stability | vox. Laeven and Ratnovski, 2014.
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