EVALUATION OF CORPORATE GOVERNACE IN THE NIGERIAN BANKING INDUSTRY
ABSTRACT
The CBN Code of Corporate Governance stated that Corporate Governance refers to the processes and structure by which the business and affairs of an institution are directed and managed. The objectives of this study are to examine Corporate Governance in relation to the promotion of corporate fairness, transparency and accountability in banks, to establish the purpose of Corporate Governance on banks and determine the application of its procedure in the banking sector, to establish that poor Corporate Governance is a critical factor in banking system instability in Nigeria and to determine the relationship between board effectiveness and good Corporate Governance. The methodology employed in this research study is the use of primary and secondary data. The primary data involves the use of questionnaire and the secondary data involves the use of journals, articles and publications. The data is presented in a tabular form using descriptive statistics and the analysis is done using correlation. The research findings gathered from this study states that the issue of bad Corporate Governance has accounted for the instability in the Nigerian Banking Industry, and customers start to loose confidence in the ability of a bank to properly manage its assets and liabilities, including deposits which could in turn trigger a bank to run or liquidate. The study recommends that the banks should be made to provide a certain minimum amount of information requirement on Corporate Governance and that the observance of good Corporate Governance and Code of Ethics as spelt out by the Regulatory Bodies, thereby leading to a virile and efficient banking system.
