What is the role of administration and management of companies in financial institutions?

Management and management of companies in financial institutions is a set of standards and directors used to create a system of inspections and balance over the management of banks and financial intermediaries. It establishes the way in which financial institutions are managed and controlled, usually through the standards set for the management of the Board of Directors and the top management. Countries have different political and regulatory environment, business standards and customs. Moreover, independent legal systems from country to country cause significant differences in the practices of company management and management. However, there is an international movement towards universal standards for all multinational financial institutions that have been gaining traction since the end of the 90's. And technological changes. These positive factors, along with poor management, corruption and fraud that have resulted in multiple financial crisis in large industrial countries over the years, have brought the role of administration and management of companies in financial institutions in many countries and internationalEconomic community. Governments around the world have acknowledged that the opacity of the proceedings and the bad requirements for the publication of banks and financial intermediaries was an important factor in destabilization of financial markets and disturbances of economies around the world.

As a result, the concept of administration and management of financial institutions in the regulatory environment has taken over a more defined role in many countries and has led to the adoption of specific international standards of supported organizations for economic cooperation and development (OECD) and Basil Committee of Probancing Supervision (BCBS). Administration and management of companies are now considered to be a significant way to control the risk, prevent crises and maintain the value of shareholders. This requires a structure with two branches that provides direction and management at the peak of financial institutions in any country to commit to transparency and responsibility in business operations.

International Standards DefineThe role of administration and management of companies in financial institutions as a mechanism for determining the values ​​of enterprises and the implementation of clear lines of liability. The right administration of public affairs ensures that members of the Board of Directors are eligible to ensure meaningful supervision and are competent in their obligations. It also provides internal and external audit procedures and ensures consistent and rational compensation structure for higher management. Most importantly, the role of administration and management of companies in financial institutions within the international paradigm is to ensure the level of transparency, which can be warned by regulators and the public of problems before they become a crisis.