A Comparative Analysis of the Corporate Governance Practices in Multinational and Domestic Banks in Zimbabwe
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Date
2013
Journal Title
Journal ISSN
Volume Title
Publisher
Scholarlink Research Institute Journals
Abstract
The Zimbabwean banking sector has been characterised by a number of corporate governance disorders. This
study aimed at analysing the corporate governance practices by multinational banks in comparison to domestic
banks in Zimbabwe. It was hoped that the research would reveal the corporate governance discrepancies
between multinational and domestic banks and hence assist the Reserve Bank of Zimbabwe in pursuing its
supervisory role as well as bring awareness to stakeholders in the banking industry. The research adopted a
cross-sectional survey research design. The target population consisted of all commercial and merchant banks in
Zimbabwe. Primary data was gathered through questionnaires and interviews. Secondary data was also
analysed in the research. The selection of the banks to be included in the sample employed stratified random
sampling to ensure representation from each key group of banks in the sample. The study revealed that the
awareness on the importance of sound corporate governance practices was of substandard levels for both bank
categories. Domestic banks, in particular, had more shortfalls compared to multinational banks. Results further
revealed that domestic banks did not represent shareholders’ interests in their corporate governance practices
and their levels of compliance to Reserve Bank of Zimbabwe’s corporate governance requirements was still
lacking. Although corporate governance strategies by multinational banks were superior to domestic banks it
was established that multinational banks needed to accept local central bank requirements on corporate
governance as an engine to enhance their corporate governance strategies.
Description
Keywords
corporate governance, multinational banks, domestic banks, compliance, strategies, Reserve Bank of Zimbabwe
Citation
Ndlovu M.W et al (2013). A Comparative Analysis of the Corporate Governance Practices in Multinational and Domestic Banks in Zimbabwe. Journal of Emerging Trends in Economics and Management Sciences 4(5):473-480.