An analysis of corporate governance practices in government controlled versus private banking institutions in Zimbabwe
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2015
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Abstract
The significance of good corporate governance practices is of paramount importance. It can be posited that the Zimbabwean banking sector crisis of the period 2003 to 2004 was largely due to poor corporate governance practices. Most of the banking institutions that faced closure in that era were of domestic origin. This crisis however did not affect the Government owned banks. This was a paradox as private banks are seen as profitable compared to Government owned banks. The paper sought to ascertain who between the government and private banks better adhered to corporate governance principles. Twenty one banks were involved in this study. A total of 39 questionnaires were sent, three per bank. Ten face to face interviews were conducted with the banks' directors and managers. The paper unearthed that corporate governance practices are observed by both private banks and government controlled banks; however private banks appear to have a slighter edge. Government owned banks do have good corporate practices in place.
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Dube, Z.L. and Murahwe, G.R., 2015. An analysis of corporate governance practices in government controlled versus private banking institutions in Zimbabwe. International Journal of Development and Sustainability, 4(6), pp.759-771.