India's Financial System Governance Quiz

Approving and overseeing the implementation of the bank’s strategic objectives, governance framework, and corporate culture; providing oversight of senior management.

Board members should be and remain qualified, individually and collectively, for their positions; understand their oversight and corporate governance role; and be able to exercise sound, objective judgment about the affairs of the bank.

The board of the parent company has the overall responsibility for the group and for ensuring the establishment and operation of a clear governance framework appropriate to the structure, business, and risks of the group and its entities.

<p>Banks should have an effective independent risk management function, under the direction of a chief risk officer (CRO), with sufficient stature, independence, resources, and access to the board.</p> Signup and view all the answers

<p>Risks should be identified, monitored, and controlled on an ongoing bank-wide and individual entity basis.</p> Signup and view all the answers

<p>It underscores the importance of governance standards in banks to ensure efficiency in resource allocation, protection of depositors’ interest, and maintaining financial stability.</p> Signup and view all the answers

<p>Governance failures can lead to inefficiency in resource allocation, jeopardize depositors’ interest, and threaten financial stability.</p> Signup and view all the answers

<p>Effective corporate governance is critical for the proper functioning of the banking sector and the overall economy.</p> Signup and view all the answers

<p>Banks' safety and soundness are key to financial stability as they play a crucial role in intermediating funds and supporting economic growth.</p> Signup and view all the answers

<p>Weaknesses in governance at major banks can lead to the transmission of problems across the banking sector and the economy as a whole.</p> Signup and view all the answers