What question did this study set out to answer?

The aim is to evaluate how corporate governance impacts financial transparency and stability in the banking sector.

March 14, 2026Open Access

A Systematic Review of the Significance of Corporate Governance in the Global Banking Sector: Transparency, Stability, and Financial Performance

Key Points

The aim is to evaluate how corporate governance impacts financial transparency and stability in the banking sector.
Conducted a systematic review of 30 peer-reviewed papers and regulatory reports
Utilized qualitative methodology within an interpretivist framework
Sourced information from databases like Scopus and Web of Science
Analyzed reports from the Basel Committee, OECD, and World Bank
Identified four key governance factors: board independence, effective audit systems, minimum capital requirements, and transparent disclosure practices
Financial transparency is enhanced by ethical leadership and regulatory compliance
Proper governance structures contribute to lower systemic risks and higher public confidence

Abstract

Corporate governance has a critical role in enhancing financial transparency and ensuring the stability of banking institutions. This study reviews the impact of corporate governance practices on financial transparency and organisational stability in the banking sector. Adopting a qualitative methodology within an interpretivist framework, the research systematically reviews 30 peer-reviewed academic papers and regulatory reports published between 2014 and 2024. The initial investigation covers information from Scopus, Web of Science, and professional reports issued by the Basel Committee, OECD, and World Bank. Four key governance factors were identified during the analysis: board independence, effective audit systems, minimum capital requirements, and transparent disclosure practices. The findings suggest that complete financial transparency arises from ethical leadership together with independent boards and regulatory obedience, as shown by research data, thereby enabling corporations to maintain lower systemic risks. Banks achieve stability through proper governance structures that protect bank operations while gaining public and investor confidence in the banking sector.

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