Publication at Faculty of Law |
2009
Abstract
The paper describes corporate governance in the Czech banking industry. Privatization of the largest Czech banks took place in late 1990s and was not done through the capital market.
This affected the corporate governance, which consists of a mix of market, extensive regulation and self-regulation tools. These tools are described in the article in more detail.
Market tools are based on the goal to maximize profits. Regulation tools are applied by the central bank, ECB and BIS as binding regulations with respect to the interest of the whole society.
Self-regulation tools include rules adopted by banks on voluntary basis, and the article describes the Ethical code of OECD and the codes of the Czech Banking Association