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Corporate Governance: What Do We Know, and What Is Different about Banks?
|April 28, 2003|
|Memo To Editors||
| A special issue of the Federal Reserve Bank of
New York’s Economic Policy Review Corporate
Governance: What Do We Know, and What Is Different
about Banks? is available. |
To provide a framework for broadening the understanding of the issue of corporate governance, as well as to identify key areas of future research, the New York Fed solicited several papers by recognized specialists in the fields of law, financial accounting, and financial economics. The papers, along with a contribution by two New York Fed economists, offer insight into corporate governance generally and as it applies to the banking industry.
The first group of academic studies reviews the literature on governance. The papers consider the role played by the board of directors, compensation, monitoring by holders of large blocks of stock, and corporate disclosure in mitigating the conflicts of interest that can exist between corporate managers and shareholders.
The second group sheds light on why banks differ from firms in unregulated industries, and describes the challenges that the differences present for regulators, bank managers, investors, and depositors.
The contents are as follows:
Part 1: A Review of the Literature on Corporate Governance
Part 2: The Governance of