“Rules versus Practice: Governance in the Financial Services Sector”

摘要

The focus is on the financial services sector which is regulated for prudential purposes by the Australian Prudential Regulation Authority (APRA). Internationally, co-ordination of monitoring and supervisory arrangements across national banking and financial systems is undertaken by the Bank for International Settlements (BIS) and committees associated with it. The Australian requirements are analyzed in detail as with the proposals put forward by BIS. The latter are important for any understanding of what may be required of the larger Australian banks. Then evidence on board membership of Australian banks and other financial services entities is examined for size and composition as well as affiliations with other corporate entities. This is followed by a substantial critique of the Australian provisions for their substance and perceptions. Independence of board members, relationships of board and management and transparency are themes treated at length. Grounds for questioning the substance of regulatory provisions are advanced. Recent empirical assessments are drawn upon to support these misgivings.