Banking and Development

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Banking and Development

Corporate Governance Analysis

Corporate governance can be looked at as a system of processes, practices, and rules through which entity in controlled and directed. Essentially, it involves establishing an equilibrium for the interests of all stakeholders (Tricker, 2015). Given that corporate governance also offers the framework for entity’s objectives attainment, it encompasses practically all the spheres of management from the internal controls and action plans to corporate disclosure and performance measure. Corporate governance is paramount for the transparency, growth, and competitiveness of a financial institution. The ensuing segments present an analysis of the corporate governance of African Development Bank, China Development Bank, and Brazilian Development Bank.

1. African Development Bank

Africa Development Bank (ADB) has eighty member countries made up of 54 regional member countries and 26 non-regional countries.  The bank has strived to ensure that all the stakeholders’ rights, sovereignty, and internal democracy are upheld. The bank does not involve its self in the member countries internal political affairs (Africa Development Bank, 2015a). There are various annual meetings that are held by the bank, and it encourages member countries to attend and raise any issue. The bank has made considerable to ensure that all the member countries are treated equitably.  The bank recognizes that it has social, contractual and legal obligation to its non-countries stakeholders including local communities, employees, and various countries policy makers. ADB has a well-spelled employee’s compensation and management policy that ensures they are treated equally. The bank is engaged in various environmental and social development functions in different countries as one way of helping the local community in Africa. This shows that the bank respects rights and equitable treatment of all its member countries and ensures meeting of the interests of all stakeholders (Africa Development Bank, 2015b).

The bank is ceremoniously overseeing by the board of governors. The board of governors is made up of finance and economy ministers from the regional-member countries. The board of governors’ qualification is by the virtual of their holding finance and economics ministerial position in their respective countries (Africa Development Bank, 2015d). Given the high position that they hold in their countries the members are usually highly experienced, skilled and educated. The role of providing strategic and oversight to the bank is vested in the board of directors. Africa Development Bank’s board of directors is made up of seven committees which include office of the auditor general, compliance review and mediation unit, anticorruption evaluation and administration tribunal. The board in……………………