| Abstract [eng] |
The Master thesis aims to analyze requirements and their shortcomings for the corporate governance of banks in Lithuania and the European Union, remuneration policy for the banking sector employees and directors as well as the relevant regulation in Lithuania and other European Union Member States. Analysis explores the corporate governance of banks in transition, principal – agent problem, the input of main stakeholders (shareholders, board of directors, supervisors, etc.) and its possible improvement as well as examines risk management, conflicts of interest, effective implementation of possible solutions. The main aim of this master thesis is to fully and comprehensively assess, compare and analyze the regulation of the corporate governance of commercial banks impact to financial stability in Lithuania and the European Union. Therefore, the following tasks were set: to analyze the regulation of corporate governance of banks and its main shortcomings in the European Union; examine the remuneration policy of directors and other banking sector employees; investigate legal instruments of the corporate governance of banks implemented in Lithuania to strengthen the financial stability; make suggestions for improving this regulation. The following methods were used in this analysis: historical, logical, teleological and mainly – systemic taking into account systemic relations between internationally operating banks and comparative – comparing the regulation of the corporate governance of banks in Lithuania and other EU Member States, the governance of banks and non-financial institutions. Main conclusions of this paper show the need for a more effective supervision of the implementation of principles on the good corporate governance and remuneration policy. They should be implemented by principle-based and proportionate way in order to take account of the differences in business models of banks, the nature of their activity, their size, complexity, legal form and different corporate governance systems and arrangements as well as every employee specific contribution, competence, loyalty and seeking for long term value for a bank and general bank financial situation, results. In case of a difficult bank, state or the EU/global situation more cooperation between financial institutions, external auditors and supervisors is essential. It should be organized not regularly but in case of enough serious problems. Furthermore, national legislation have to be improved in time, supervisory institutions have to present analysis of significant problems, banking and its supervision needs to be simplified by publishing corporate governance and remuneration policies, the EU corporate governance code for banks should be created. |
