Banking · Corporate Governance
In banks, governance quality is closely linked to financial stability because weak oversight can amplify risk-taking, conceal stress, and undermine depositor confidence. A sound governance framework in a bank is primarily intended to ensure:
- 1unrestricted discretion of executive management
- 2complete elimination of regulatory intervention
- 3automatic profit growth in all business cycles
- 4disciplined decision-making, accountability, and alignment of strategy with risk controls✓
Correct answer
disciplined decision-making, accountability, and alignment of strategy with risk controls
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