ASSESMENT OF CORPORATE GOVERNANCE PRACTICES IN THE CASE OF CONSTRUCTION AND BUSINESS BANK S.C.

Abstract

This study was conducted to evaluate the extent to which corporate governance practices are applied in the Construction and Business Bank. Internal corporate governance mechanism was the critical focus of the study. A descriptive research approach was employed to achieve the goal of this research. All the management members and employees of the Bank were used as a target population of the study. A sample of the responding staff was drawn from all the head office processes, twenty city branches and five from outline branches, which is a total of 192 participants, were involved in the study. In order to get relevant data from the target population questionnaire and interviews were used. The data collected through questionnaire were analyzed using descriptive analysis techniques and the qualitative data were analyzed using explanation. Furthermore, the qualitative data (data from interview) were analyzed together with the quantitative one to triangulate the results found from the questionnaire. In this respect, generally the finding result portrayed that the culture of corporate governance in the CBB still has a setback and needs improvements. The finding of the study also disclosed that the board and the management of the bank are not effective in discharging their roles and responsibilities. In addition weak legal controls and law enforcement within the industry and weak relationship between executive’s managements and employees of the bank are possible barriers for the implementation of good corporate governance within the bank. As a result, based on the major findings, the study reached a certain conclusion and presented some possible recommendations so as to alleviate the problems.