The development of the banking business increased rapidly, both internally and internally, directly or indirectly. It also increased the level of business risk that must be faced by the banking sector. Therefore, to anticipate the complexity of the problems in the banking business, the implementation of good corporate governance becomes a necessity.
This is possible if all components of Comprehensive Banking Supervisory System (CBSS), regardless of the characteristics of the banking business put forward the principle of prudential and trust. The components of CBSS include; first, Standard Guidelines for Internal Control System for Commercial Banks. This guideline is a monitoring mechanism established by bank management continuously. Second, supervision and internal control system constantly monitored the bank and evaluated regularly. External oversight banks include external parties who have a relationship / interest directly or indirectly to the bank. The third is human capital. Human capital is a combination of knowledge, skills, innovation, and the ability of each individual to perform his duties. Fourth, good corporate governance (GCG) in the banking industry is absolutely necessary because the banking community as a collector of funds. Fifth, law enforcement and finally market discipline
From the above description, it can be concluded that basically the framework of bank supervision systems use a tiered and integrated approach. However, the clarity of the accountability of each party which really understands their role is needed.
Popularity: 1%
Related posts: