Corporate Governance Reporting, Camel Framework And Bank Performance

Abstract

Worldwide experience of the financial crisis in the banking sector has led to the unstable performance of banking institutions in Malaysia. Various measures have been taken to improve and empower bank performance so that their impact toward the crisis can be reduced, specifically in terms of financial crises. The crisis has resulted in the collapse of the stock market and property throughout the country, with the greatest impact causing some banks have been categorized as being unhealthy. Due to the crisis, some banks have had to merge and consolidate in order to continue their businesses. This happened due to the lack of mitigating measures, such as a less robust financial structure and weak corporate governance practices in Malaysia. Initially, most researchers only investigated the financial performance of banking institutions. However, recent years have shown that, apart from financial performance, corporate governance is also an indicator that affects the reductions of bank performance.