THE IMPORTANCE OF CORPORATE GOVERNANCE IN THE BANKING SYSTEM

Corporate governance plays an essential role in the stability and efficiency of the banking sector, ensuring transparency, risk management and protection of stakeholders' interests. This article analyzes the importance of corporate governance in banks, with a focus on international regulations and particularities in Romania and Europe.

It highlights the benefits of effective governance, such as increased financial stability and improved economic performance, but also the risks of weak governance, such as loss of trust and vulnerability of banking institutions. It also outlines mechanisms for improving governance, including transparency, internal control and ESG integration.