Weak corporate governance in banks may create risks extending far beyond the institution itself because banks are interconnected with depositors, payment systems, and credit markets. The most serious implication of such weakness is that it may:

Question

Banking · Corporate Governance

Verified Solution4 OptionsUpdated: October 2026👁️1 View

Share:

Correct answer

Lead to frauds, asset-quality deterioration, and erosion of public confidence

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Corporate Governance?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Banking · Corporate Governance

The 'Drain of Wealth' theory was propounded by which Indian nationalist leader?

Which event is considered the turning point in Mahatma Gandhi's leadership in the Indian independence movement?

Which African leader is known for his non-violent opposition to colonial rule?

Answer 1

Improve risk appetite and accelerate innovation in lending

Answer 2

Reduce the relevance of prudential norms in the long run

Answer 3

Lead to frauds, asset-quality deterioration, and erosion of public confidence

Answer 4

Automatically increase profitability through managerial flexibility

Related Practice Questions