Annex 3.1. A new dataset on the corporate governance of banks

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Economic institutions

Table A.3.1.1 shows the main findings of an assessment of the corporate governance of banks in 16 countries in eastern Europe and Central Asia conducted by the EBRD’s Legal Transition Team. The assessment focused mainly on internal corporate governance arrangements, particularly the role and composition of boards. It analysed the legal and regulatory framework, its implementation by supervisors and the practices developed by the systemically important banks in each country. All data relate to 2011.

The assessment was based on questionnaires completed by banks, regulators, banking associations and law firms, complemented by additional research on relevant legislation and banks’ disclosures, as well as face-to-face interviews in some countries.

The table grades each aspect considered in the assessment using a colour system:

• dark green: fit for purpose and close to best practices;
• pale green: generally adequate, but would benefit from further reform;
• yellow: some positive elements, but in need of overall reform;
• red: needing significant reform.

Major shortcomings include a lack of transparency in succession and nomination processes, the unclear role of independent directors on boards and boards’ committees, and the poor non-financial disclosure offered by banks.

A detailed description of the study and its findings will soon be presented by the EBRD.

Assessment of the corporate governance of banks

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