Abstract
This chapter puts the various aspects of corporate governance, risk management, and compliance identified before in context with the reality of banking regulation and reporting, particularly in Brazil and Germany. Properly working legal and judicial systems are crucial for both, corporate governance and financial markets development. Generally, the ease of contracting has been referred to above with relation to the Rule of Law, equally property rights—including shareholder rights—, the enforceability of legal rights within an acceptable timeframe, and the absence of corruption. With regards to corporate governance, specific rules aiming at increasing transparency, such as disclosure obligations, are important. Those are difficult to quantify and cannot be compared easily, as they are of a rather qualitative character. Nonetheless, even a more abstract comparison can yield significant differences between countries.
Changing the law on the books does not guarantee corporate governance improvement (Licht et al. 2005:230)
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“[T]he failure of Basel II to address the issue of systemic risk and the role of particular classes of asset price inflation associated with such risk means that the opportunity to push these benefits further has been missed.” (Docherty 2008:104)
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For details on poison pills, please refer to Monks (2004:200 ff.).
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English translation published on 15/08/2014:
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Compare Commerzbank’s mobile/online banking record under 3.5.1.
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As to be filed with the US Securities and Exchange Commission pursuant to section 13 or 15(d) of the Securiteis Exchange Act of 1934.
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In this context, Pedro Malan, a former finance minister has been quoted as saying that “In Brazil, even the past is unpredictable”. (The Economist, February 8th, 2014:61)
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Compare Itaú’s facebook-record under 3.4.5.
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The US Banking Act of 1933—also known as Glass-Steagall Act—limited commercial bank activities, also by restrictions on affiliations between commercial banks and securities firms. These restrictions were repealed in 1999 by the Gramm-Leach-Bliley Act which was later blamed for contributing to the 2007–2009 financial crisis, while others argued that the ability of commercial banks to acquire securities firms as well as the latter’s ability to convert into bank holding companies helped mitigate the crisis.
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Gericke, R.C. (2018). Institutional Background. In: Corporate Governance and Risk Management in Financial Institutions. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-67311-0_3
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