Corporate governance in financial entities

Abstract

Corporate governance is very important for the performance of companies, especially if this focuses on the financial sector. The lack of involvement by financial institutions in improving corporate governance has been one of the major problems that has caused the economic crisis. There are many problems that international institutions are constantly investigating such as risk management, board of directors, remuneration system or supervision among other. The problems of corporate governance are being solved over time by the involvement of international institutions such as the European Commission. After identifying the problems, this paper will show the solutions that the international institutions are studying to try to improve the corporate governance in financial sector. Finally, this work also will empirically analyse the problem of the remuneration system that will be related with the performance of the banks and the votes of the shareholders as a measure of support.