The key code and advanced handbook for the governance and supervision of banks in Australia / Francesco de Zwart.

Singapore : Springer, 2022.

1st edition

199980

Banks and banking -- Australia.

Banking law -- Australia.

VOLUME I

PART I: Governance of banks in the GFC and beyond key field no 5 (part 1): introduction to the relational corporate governance model, key code and advanced handbook

1. Aims and approach to examining the governance of banks in the global financial crisis and beyond to the Australian Banking Royal Commission Inquiry into Banking Misconduct in stage 2

2. The theoretical and operational parts of the stage 1 relational approach and model

3. Determining the effects of governance variables in the relational approach

4. Key code and advanced handbook user guide

5. Quick-reference guide

PART II: Governance of banks in the GFC and beyond key field no 5 (part 2): the challenge for relational governance variables for Australian banks

6. Key questions and core failures in bank governance

7. Distinguishing features of banks for the relational approach

8. Maximising the ‘default standard’ of shareholder value

9. Overview of stage 2 bank-specific key code and advanced handbook for Australian banks

PART III: Governance of banks in the GFC and beyond key field no 5 (part 3): bank-specific coverage and relational proximity rating results for Australian banks

10. Existing stage 1 and new stage 2 bank-specific relational corporate governance variables for Australian banks

PART IV: Governance of banks in the GFC and beyond key field no. 5 (part 4): issues in executive compensation and accountability – incentives, bonuses, equity and option compensation and the BEAR

11. Approach and structure of part 4 has a risk-taking focus

12. Government and market reform report recommendations for compensation or remiuneration

13. FSB principles for sound compensation practices (FSBP) and FSB implementation standards (FSBIS)

14. NAB self-assessment 2018 recommendations and commentary on remuneration

15. Westpac review team 2018 recommendations and commentary on remuneration

16. Shareholder value maximisation in banks and financial firms

17. Additional compensation/remuneration committee considerations

18. Compensation practices for misconduct risk

19. FSRC final report commentary and recommendations in relation to remuneration

20. The BEAR – bank executive accountability regime – and APRA’S non-financial risk accountabilities

21. APRA revised draft prudential standard CPS 511 remuneration. VOLUME II

PART V: Governance of banks in the GFC and beyond key field no. 5 (part 5): boards and committees, independence, expertise and bank and risk culture

22. Governance of banks in the GFC and beyond key field no. 5 (part 5): boards and committees, independence, expertise and bank and risk culture

23. Board characteristics for Australian major banks

24. Functioning of the board and monitoring and evaluation of performance

25. Diversity

26. Skills, independence, competence and ‘fit and proper person’ tests

27. Failures in risk modelling and rating securitized products

28. Ownership, governance structure and government bailout

29. Composition, independence, representation, codes of conduct and culture

30. NAB self-assessment 2018, Westpac review team 2018 and Westpac reassessment on governance, accountability and culture

31. NAB and Westpac recommendations and commentary on culture

32. APRA information paper 2019 on risk culture

33. Financial and bank-specific expertise

34. Role, responsibilities and time commitment for the chairperson

35. Size and composition of the board

36. Board committees

37. Complexity of bank structures, off-balance sheet entities, disclosure and transparency

PART VI: Governance of banks in the GFC and beyond key field no 5 (part 6): the governance and management of bank risk, risk appetite and risk culture

38. Introduction to failings of risk management in the global financial crisis and beyond to the Australian Banking Royal Commission Enquiry into Banking Misconduct

39. NAB and ASIC failures in issue identification, escalation and resolution

40. Risk culture, risk appetite and risk appetite statements

41. FSB effective risk appetite framework

42. The three lines of defence

43. Board Risk Committee (BRC)

44. Board Risk Committee composition

45. The risk management function

46. The internal audit function

47. Governance variables for remediation activities

48. Governance variables for APRA on risk management and compliance

49. NAB’S Risk Management Framework (RMF) and ASX enviromental and social risks

50. Governance variables for the Westpac Review Team 2018 and the Westpac Reassessment on Risk Management and Compliance.

This Key Code and Handbook examines the corporate governance and accountability of Major Banks, their directors and executives which were the central focus of bank, Supervisor, Regulator and governmental activity and public scrutiny in 2018 and 2019. This book explores this responsibility focus by providing evidence from the Global Financial Crisis and beyond with both APRA and ASIC investigating illegal conduct, misconduct and conduct which was below the level of community expectations. This book discusses how the Royal Commission into misconduct in the banking and financial services industry has already given rise to a detailed Final Report whose recommendations are still being put into effect. Further, this book uses evidence provided by the large number of Prudential Standards issued by APRA and investigations into the conduct of Major Banks by Regulators. This book explores governance variables – over 1,700 in number and grouped into 159 ‘key groupings’ or separate categories – which are all indexed to 28 governmental, regulatory and supervisory reports and documents to create a governance code and commentary specifically tailored to Australian banks. Each governance variable is modelled on the Stage 1 Relational Approach contained in Enhancing Firm Sustainability Through Governance. Given the huge interest in the governance of banks, Parts 1 and 2 – explaining the Relational Approach - of Stage 1 were recently published in November 2018 and June 2019 in the Australian Journal of Corporate Law. This book is the largest reference book and handbook in publication worldwide containing the structures, mechanisms, processes and protocols – the checks and balances we call ‘governance variables’ – that deeply addresses and explains banking accountability and regulation in Australia. - Publisher's website.

Includes index and bibliographical references.

Detailed examination of corporate governance and accountability of banks including APRA and ASIC investigations.

9789811617096

2 volumes (xxxii, 1378 pages) ; 25 cm