The impact of corporate governance on efficiency of Nepalese commercial banks

Abstract

Corporate governance has been increasingly popular in recent years. From the 1997 Asian financial crisis to the Enron and WorldCom scandals in the United States, the main reason for these problems was poor corporate governance. Corporate governance is considered as one of the most critical factors influencing firm performance. Corporate governance in the banking sector is particularly important. This is because the banking sector plays a special role in the economic system as it facilitates capital allocations and the risk management of the business. Thus, the corporate governance arrangements of banks are very important for the business of the banks and their business customers.