Abstract
There is no doubt that corporate governance failure was cited as a major contributor to the financial crisis of 2008 (Kirkpatrick 2009; Dermine 2013). Countries around the globe were urged to review their banks’ corporate governance systems and introduce changes and developments to address the deficits exposed by the financial crisis. For instance, the UK has responded by initiating ‘the biggest reforms to the banking sector in a generation: to make banks more resilient to shocks, easier to fix when they get into difficulties, and to reduce the severity of future financial crises’ (UK Government 2015). Here, a major lesson from the financial crisis was that there is no ‘one size fits all or a magical recipe as far as good corporate governance is concerned’ (Buchs 2009, p. 1). Thus, effective reform should deal with corporate governance as a socially constructed phenomenon because of ‘the temporary, transient and emergent patterns of corporate governance on a historical and contextual basis in a given society’ (Ardalan 2007, p. 511). Indeed, this particular approach is deemed suitable in the context of developing countries due to their unique institutional contexts that makes it difficult to follow unconditionally Western corporate governance systems (Rwegasira 2000).
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Notes
- 1.
Here normative pressures refer to the pressure created on banks as a result of corporate governance standards established by international organisations. These standards create an institutional pressure based on a binding expectation that banks should comply with these corporate governance standards to be perceived as appropriate within the international banking domain (Scott 2001). Also, international organisations normally use these standards as a benchmark for a well-governed banking organisation. More precisely, international organisations would use these standards when making donations to well-governed banks.
- 2.
Protecting depositors’ funds has become a priority for the CBE, especially after corporate-governance-related bank failures occurred during late 1990s, leading to a huge NPL problem. So here protecting depositors is a priority for improving bank corporate governance in the EBS, though not because the depositors themselves are aware of what good corporate governance can offer them. These failures have cost the CBE high bail-out costs to compensate depositors for their lost funds.
- 3.
Covers the period of 2009–2011.
- 4.
http://www.al-monitor.com/pulse/business/2015/05/egypt-central-bank-role-social-economic-development.html#ixzz3oMmpTSMC.
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Sorour, M.K., El-Sakhawy, A. (2016). On the Evolution of Corporate Governance Culture in Africa: The Case of the Egyptian Banking Sector. In: Howell, K., Sorour, M. (eds) Corporate Governance in Africa. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-56700-0_4
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