Corporate governance and banking performance in the context of globalization

Abstract

Research background: Research background is written after the literature review. For example, Pham Q et al. (2020), emphasizes the effects of corporate governance, which is in a continuous development in the context of globalization. On the other hand, there is an obvious link between the banking activity, which is intended to be as efficient and governing as possible, which is also highlighted in the work of Arora A (2018). The impact of corporate governance on banking performance is also presented. Carrying out banking activity in compliance with the principles of corporate governance, leads to shaping an efficient and conducive environment for both employees and the company itself. At the same time, the application of the concept aims at the overall management of the entities, which allows the common functioning of the internal components and the performance of internal control. Purpose of the article: This paper aims to present the most important theoretical and practical aspects of the importance of corporate governance in banking performance. Corporate governance is currently receiving special attention, an argument being the numerous studies conducted and the growing interest that companies have in this concept Methods: This paper starts from the hypothesis of the influence of globalization on corporate governance and banking performance. The article was based on the study of the literature and the identification of recent data on certain banking indicators. At the same time, values of banking dynamics at the level of the period 2016-2019 were analyzed and calculated. Last but not least, the method of comparison regarding the financial performances at the banking level and the profitability rate was used. Findings & Value added: Following these researches, it was found the link between globalization and the magnitude that corporate governance currently has, in close connection with banking performance, determines the corporate variety of activity worldwide or regionally. The main results were disseminated through the article and it adds value through the analysis created at global and regional level (at European level) and the interpretation of statistical data related to banking.

Organization and Functioning of Commercial Banks in Romania – Transylvania Bank

“…Globalization trends of the world economy also frame the development of the Romanian banking system, although, in the case of Romania, it is much more appropriate to talk about a regional concentration of financial processes and the market, because commercial banks hold a dominant position in the Romanian financial system due to the rapid growth of recent years, and the rest of the financial institutions have relatively low market shares (Buzoianu et al, 2021). The place, role and impact of commercial banks in the domestic financial system and in the Romanian banking system, as well as on financial stability, are very important, although in recent years the financial system has encountered some downward trends in its main indicators (Burlacu et al, 2021).…”