A National Webinar on ‘Corporate Governance in Banks: Issues and Challenges’ was organised virtually by University Law College, Vinoba Bhave University on Wednesday. The webinar started with the introduction of Dr. Manoranjan Sharma, Chief Economist, Infomerics Ratings & Former Chief Economist and General Manager, Canara Bank, by Dr. Jaydip Sanyal, Principal University Law College, Vinoba Bhave University, Hazaribag, and with a formal welcome speech by Prof. (Dr.) M.K Singh, Registrar, Vinoba Bhave University.
The speaker began with the brief introduction of ‘Corporate Governance’ as an effective mechanism in the proper functioning of the banking sector and the economy as a whole. Banks perform a crucial role in the economy by intermediating funds from savers and depositors to activities that support enterprise and help drive economic growth. Banks’ safety and soundness are key to financial stability, and the manner in which they conduct their business, therefore, is central to economic health. Governance weaknesses at banks that play a significant role in the financial system can result in the transmission of problems across the banking sector and the economy as a whole.
Ranging from BCCI scam to the PNB crisis, the speaker highlighted the reason behind the downfall and upsurge of corporate governance scams. The speaker demonstrated the significance of corporate governance in public sector banks under the objectives including operate the bank’s business on a day-to -day basis; protect the interests of depositors, meet shareholder obligations, and take into account the interests of other recognised stakeholders; align corporate culture, corporate activities and behaviour with the expectation that the bank will operate in a safe and sound manner, with integrity and in compliance with applicable laws and regulations; and establish control functions.
Additionally, he has also taken the reference of the Report of the Kumar Managalam Birla Committee on Corporate Governance and also dealt the significance and impact of the report on present banking and corporate functioning. In furtherance, the speaker has also drawn the significance of Basel Committee’s guidance on the principles of corporate governance published by the Organisation for Economic Co-operation and Development (OECD). The role played by the chief regulator (RBI) in ensuring corporate governance practices in banking sectors was well highlighted together with the emerging issues and challenges.
There were a lot of valuable interactions from the participants’ end. Dr. Manoranjan Sharma with his valuable and innovative speech has given a broad idea on corporate governance practices in banks. The faculties and the students of the University Law College were highly benefited and enriched with the discussion held in the webinar.
The National Webinar ended with a vote of thanks given by Nivedita Shree, Assistant Professor, University Law College on behalf of the entire stakeholders of the college.