Prior studies have reported mixed evidence. You can read the following papers.

https://ideas.repec.org/a/asi/aeafrj/2017p1326-1343.html

https://www.researchgate.net/publication/256318612_Corporate_Governance_and_Banking_Performance_a_Comparative_Study_between_Private_and_State_Banking_Sector_in_Sri_Lanka

https://www.sciencedirect.com/science/article/pii/S2212567115011387

Totally agree with Ibrahim Nandom Yakubu

Depends on many factors: incentive schemes, gender, age, religion, horizontal/vertical hierarchy:

Article Risk Management, Corporate Governance, and Bank Performance ...

Article Governance, religious assurance and Islamic banks: Do Sharia...

https://mpra.ub.uni-muenchen.de/76804/1/MPRA_paper_76804.pdf

https://www.ucm.es/data/cont/docs/85-2013-11-29-gender_div_european_banks.pdf

Article Gender diversity, corporate governance and firm behavior: Th...

https://mpra.ub.uni-muenchen.de/46773/1/MPRA_paper_46773.pdf

Thanks for the question.

Thanks a lot, Ibrahim and Dmitry.

theoretically governance can only improve performance. The channel through which governance improves performance differs according to the theoretical approach.

I. Traditional shareholder governance and partnership governance: Governance creates value in two ways: to engage stakeholders to participate in value creation through equitable sharing; avoids the destruction of value by its spoliation by a stakeholder. In the banking sector: 1.An incentive remuneration system; premium on each new credit agreement that he has signed. 2.Stocks options for executives to manage bank branches so that the stock market value of the bank increases. 3.the independent audit system for managers and bank executives to evaluate them according to objective rules taking into account objectives of means and results (Basel III standards).

Partnership governance extends the incentive and control mechanisms to several stakeholders. 4. Employee participation in supervisory bodies (to rebalance power) (Case of the dual board of directors in Germany). 5. Give employees the status of the residual creditor through employee share ownership programs.

II. Cognitive governance creates value by stimulating innovation and new ideas. 1. Remunerations that pay bonuses to employees who have new ideas (as in the Keiretsu). 2. The audit and the control system devotes part of its function to the search for new opportunities: a board of directors composed of independent directors and who exercise several mandates = sit on boards of directors of different entities ( bank, insurance, corporate clients, etc.) which is a source of information on the actual financial situation of the debtors (authentic and non-identifiable information in the balance sheets offered by the network of boards of directors).

Thank you so much, Zoubir.

مرحبا عزيزي

مو

If the Board is strong & active, it will be positive.

Completely agree with all said, governance can surely result in bank performance, as per said by Vijayanand sir board should be strong must accept the governance challenges related to transparency, accountability, fairness and responsibility. from the other perspective of the study board should also be strong towards financial planning, ethical conduct, HR Mgt, Risk taking, policy framework etc. ultimately Board performance depends upon bank performance. in reality Board is the care taker of governance. so obviously good governance result in sound bank performance and not only financial performance other performance too.

Its true that BOD performance sometimes will not be good, board structure, composition and knowledge matters. when we run pilot test some parameters will strongly reveal board inefficiency to maintain governance norms. In few cases of my research around 10% of the boards not aware of Governance Mechanism and Practices.

I belive it could impact financial performance and controls positively if we consider that as good governance. For instance, powerful and expert board of directors committees are strong governance mechanism which improve firm succeses.

Where corporate governance is poor, weaknesses in the monitoring system are almost inevitable. Since corporate governance includes in particular the obligation to comply, there is an obvious connection with the Bank's performance, measured in profit. An unfortunately inglorious example is "Deutsche Bank AG", whose annual results have always been sharply reduced over the past few years due to penalties, sometimes running into the billions, as a result of non-compliance (market manipulation, deficits in the control system, etc.) and corresponding provisions in the annual financial statements.

Prof-Dr-Ahmed Al-Baidhani أ. د. احمد البيضاني corporate governance for banks are different from the Corporate Governance Codes that govern the PLCs listed on the Stock Exchanges around the world as their CG (for the banking sector) is based on the rules of the Basel Committee on Banking Supervision, in which the latest rules would come from Basel III.

The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the prudential regulation of banks and provides a forum for regular cooperation on banking supervisory matters. Its 45 members comprise central banks and bank supervisors from 28 jurisdictions.

You may want to refer to the following articles:

Thanks a lot, everybody. You have been very helpful.

As a rule, in many countries corporate governance is strongly regulated issue.

Thanks a lot Saleh and Alexander.

https://blog-ipleaders-in.cdn.ampproject.org/v/s/blog.ipleaders.in/corporate-governance-in-the-banking-sector/amp/?amp_js_v=a6&_gsa=1&usqp=mq331AQHKAFQArABIA%3D%3D#aoh=16202305756789&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&share=https%3A%2F%2Fblog.ipleaders.in%2Fcorporate-governance-in-the-banking-sector%2F