Conclusion

Abstract

Throughout this text, several comments were made about the responsibilities of the board of directors in overseeing the management of banks operating in developing financial markets. One of the more general comments related to the expanded responsibilities of directors resulting from the increasing complexity of banking in these markets. The competitive forces, and unaccustomed risks associated with financial liberalization, have placed tremendous pressures on bank management. Some banks have failed to establish risk management systems to identify, monitor and control the risks inherent in these markets; and if even the systems were established the directors might not have the information or competence to monitor and enforce compliance with the systems’ prudential requirements.