Good corporate governance in the financial sector prevents the abuse of power, self-serving conduct, and imprudent and high-risk behavior by managers – issues that gained new importance in the context of the global crisis. Unfortunately, in many countries corporate governance of financial institutions remains weak or largely overlooked.
Recognizing this, Riinvest Institute for Development Research, a private non-profit research organization and Kosovo’s first think tank, undertook a comprehensive review of the state of corporate governance in the country’s financial sector. CIPE’s most recent
Feature Service article highlights the key findings of this study.
Article at a Glance
- Riinvest Institute’s survey of corporate governance practices in the Kosovar financial system reveals improvements in transparency, disclosure, and shareholder rights over the last decade.
- Improvements are lacking in the area of board composition and relations with stakeholders, especially the business community.
- Lack of attention on the part of financial institutions to the views and needs of businesses is damaging to Kosovo’s economic development prospects.
- Government should encourage more competition in the financial sector and take actions to improve the supply and affordability of credit to the private sector.
The full report is available here.
Published Date: December 17, 2009