چکیده:
Corporate governance (CG) is an important effort to ensure accountability and responsibility and is a set of principles, which should be incorporated into every part of the organization. This study focused on the state of Corporate Governance (CG) in two categories of the banking industries: Conventional Banks and Islamic Banks. As Conventional Banks and Islamic Banks differ a great deal in their rules, regulations and operating procedures, the corporate governance (CG) practice of these two banking sectors is also different from each other. Here, in this paper it is tried to represent a clear comparative study about corporate governance (CG) practice of these two banking sectors. For this purpose it has been selected ten commercial banks of which five are renowned Conventional Banks and the same number of Islamic Banks in Bangladesh. After exploring the scores of each indicators it has been noticed that in average the grand score of Islamic Banks is less than the grand score of Conventional Banks to the extent of 0.07 (0.60-0.53). And in 2012 the grand score of Islamic Banks is less than the grand score of Conventional Banks to the extent of 0.05 (0.83-0.78). But Islamic Banks signify a higher overall improvement score than Conventional Banks that is 0.02 (0.25-0.23). Both Conventional Banks and Islamic Banks are being imperative in practicing corporate governance (CG) as both the banking sectors are facing significant improvement in practicing CG. But in comparison to Conventional Banks, Islamic Banks are bit lacked behind in corporate governance (CG) practices.
خلاصه ماشینی:
This paper focused on the corporate governance (CG) practices by the Conventional Banks and Islamic Banks and represents a comparison between them.
(1998), in comparison to Conventional Banking, Islamic Banking needs more corporate governance to omit the weaknesses of the past and to increase the transparency by monitoring the financial activities (Archer et al.
Objectives of the Study The broad objective of the research is to understand the overall state of corporate governance (CG) in the Conventional and Islamic Banking sector of Bangladesh.
After having a closer look to the four other indicators (Independent director, BOD and functionalities of board, Audit committee, and Transparency and disclosure), from this table it is also found that the four other indicators’ scores are 0.
This just because the banks have not sufficiently scored in holding adequate number of board meetings and attendance by the directors, fairness of financial statement, soundness of internal control, board size, compliance with accounting standards, separate chairmanship from the CEO etc.
2 5 Table 2: The score on each indicator and overall performance in the conventional banking sector of practicing CG Indicators Score- average Score-2012 Improvement Nature of compliance 0.
2 3 Table 4: The score on each indicator and overall performance in the Islamic banking sector of practicing CG Indicators Score-average Score-2012 Improvement Nature of compliance 0.
After having a closer look on table 5 it is found that in comparison to Islamic Banks, Conventional Banks are bit imperative in the overall practices of Corporate Governance(CG).