Navigating Financial Landscapes: Evaluating the Interplay between Bank Health, GCG Self-Assessment, and Performance in Global Banking Institutions
DOI:
https://doi.org/10.38035/dijefa.v4i6.2304Keywords:
Bank Health, Corporate Governance, Performance.Abstract
This article examines the intricate relationship between bank health, corporate governance practices, and performance within the global banking sector. As financial landscapes evolve, understanding the dynamics among these factors becomes imperative for stakeholders, regulators, and investors alike. The article synthesizes existing literature to elucidate how bank health, as a multifaceted construct, influences corporate governance mechanisms and ultimately impacts performance metrics in global banking institutions. It delves into the significance of effective corporate governance, particularly through self-assessment frameworks such as Good Corporate Governance (GCG), in mitigating risks and enhancing organizational resilience. By employing a systematic literature review methodology, this study identifies key themes, trends, and gaps in current research surrounding the interplay between bank health, GCG self-assessment, and performance. It explores various dimensions including regulatory frameworks, risk management practices, and financial stability indicators to provide a comprehensive understanding of the subject matter. Furthermore, the article offers insights into potential avenues for future research and practical implications for policymakers and industry practitioners. By critically evaluating existing literature, this study contributes to the ongoing discourse on fostering transparency, accountability, and sustainability within the global banking sector. In conclusion, this article serves as a valuable resource for academics, policymakers, and industry professionals seeking to navigate the complex terrain of global financial markets and enhance the resilience and performance of banking institutions in an ever-changing landscape.
References
Afjal, M., Salamzadeh, A., & Dana, L. P. (2023). Financial Fraud and Credit Risk: Illicit Practices and Their Impact on Banking Stability. Journal of Risk and Financial Management, 16(9), 386. https://doi.org/10.3390/jrfm16090386
Abeje, M., & Luo, F. (2023). The Influence of Safety Culture and Climate on Safety Performance: Mediating Role of Employee Engagement in Manufacturing Enterprises in Ethiopia. Sustainability, 15(14), 11274. https://doi.org/10.3390/su151411274
Alam, N., Sivarajah, G., & Bhatti, M. I. (2021). Do Deposit Insurance Systems Promote Banking Stability? International Journal of Financial Studies, 9(3), 52. https://doi.org/10.3390/ijfs9030052
Amrani, O., & Najab, A. (2023). The Impact of Multi-Layer Corporate Governance on Banks’ Performance under the GFC and the COVID-19: A Cross-Country Panel Analysis Approach. Journal of Risk and Financial Management, 16(1), 15. https://doi.org/10.3390/jrfm16010015
Benink, H. (2020). Global Bank Capital and Liquidity after 30 Years of Basel Accords. Journal of Risk and Financial Management, 13(4), 73. https://doi.org/10.3390/jrfm13040073
Bunget, O.-C., Mate?, D., Dumitrescu, A.-C., Bogdan, O., & Burc?, V. (2020). The Link between Board Structure, Audit, and Performance for Corporate Sustainability. Sustainability, 12(20), 8408. https://doi.org/10.3390/su12208408
Diantaris, M. T. A. (2024, February 10). Strategic Imperatives: Unpacking Challenges and Opportunities in Corporate Governance. The Jurnals. Retrieved from https://jurnals.net/strategic-imperatives-unpacking-challenges-and-opportunities-in-corporate-governance/
Gambetta, N., Azcárate-Llanes, F., Sierra-García, L., & García-Benau, M. A. (2021). Financial Institutions’ Risk Profile and Contribution to the Sustainable Development Goals. Sustainability, 13(14), 7738. https://doi.org/10.3390/su13147738
Gardi, B., Aga, M., & Abdullah, N. N. (2023). Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS. Sustainability, 15(13), 9869. https://doi.org/10.3390/su15139869
Haris, M., Yao, H., Tariq, G., Javaid, H. M., & Ain, Q. U. (2019). Corporate Governance, Political Connections, and Bank Performance. International Journal of Financial Studies, 7(4), 62. https://doi.org/10.3390/ijfs7040062
Hamed, R. (2023). The Role of Internal Control Systems in Ensuring Financial Performance Sustainability. Sustainability, 15(13), 10206. https://doi.org/10.3390/su151310206
Helfaya, A., Morris, R., & Aboud, A. (2023). Investigating the Factors That Determine the ESG Disclosure Practices in Europe. Sustainability, 15(6), 5508. https://doi.org/10.3390/su15065508
Jámbor, A., & Zanócz, A. (2023). The Diversity of Environmental, Social, and Governance Aspects in Sustainability: A Systematic Literature Review. Sustainability, 15(18), 13958. https://doi.org/10.3390/su151813958
Jin, M., & Kim, B. (2022). Effects of ESG Activity Recognition Factors on Innovative Organization Culture, Job Crafting, and Job Performance. Administrative Sciences, 12(4), 127. https://doi.org/10.3390/admsci12040127
Johnson, D., Rodwell, J., & Hendry, T. (2021). Analyzing the Impacts of Financial Services Regulation to Make the Case That Buy-Now-Pay-Later Regulation Is Failing. Sustainability, 13(4), 1992. https://doi.org/10.3390/su13041992
Kabara, A. S., Abdullah, D. F., Khatib, S. F. A., Bazhair, A. H., & Al Amosh, H. (2023). Moderating Role of Governance Regulatory Compliance on Board Diversity and Voluntary Disclosure of Non-Financial Firms in a Developing Country. Sustainability, 15(5), 4527. https://doi.org/10.3390/su15054527
Karim, M. A., Ong, T. S., Ng, S. H., Muhammad, H., & Ali, N. A. (2022). Organizational Aspects and Practices for Enhancing Organizational Project Management Maturity. Sustainability, 14(9), 5113. https://doi.org/10.3390/su14095113
Lapinskien?, G., & Danilevi?ien?, I. (2023). Assessment of Green Banking Performance. Sustainability, 15(20), 14769. https://doi.org/10.3390/su152014769
Leo, M. (2020). Operational Resilience Disclosures by Banks: Analysis of Annual Reports. Risks, 8(4), 128. https://doi.org/10.3390/risks8040128
Li, J., Maiti, A., & Fei, J. (2023). Features and Scope of Regulatory Technologies: Challenges and Opportunities with Industrial Internet of Things. Future Internet, 15(8), 256. https://doi.org/10.3390/fi15080256
Mariscal-Cáceres, J., Cristófol-Rodríguez, C., & Cerdá-Suárez, L. M. (2024). Regulatory Implications of the Supervision and Management of Liquidity Risk: An Analysis of Recent Developments in Spanish Financial Institutions. Journal of Risk and Financial Management, 17(2), 46. https://doi.org/10.3390/jrfm17020046
Metz, D., Ilie?, L., & Nistor, R. L. (2020). The Impact of Organizational Culture on Customer Service Effectiveness from a Sustainability Perspective. Sustainability, 12(15), 6240. https://doi.org/10.3390/su12156240
Minciullo, M., Zaccone, M. C., & Pedrini, M. (2022). The Antecedents of Corporate Sustainability Performance: A Study on Generic and Sustainability-Related Corporate Governance Mechanisms. Sustainability, 14(15), 9761. https://doi.org/10.3390/su14159761
Mohd Noor, N., Rasli, A., Abdul Rashid, M. A., Mubarak, M. F., & Abas, I. H. (2022). Ranking of Corporate Governance Dimensions: A Delphi Study. Administrative Sciences, 12(4), 173. https://doi.org/10.3390/admsci12040173
Rehman, H., Ramzan, M., Haq, M. Z. U., Hwang, J., & Kim, K. B. (2021). Risk Management in Corporate Governance Framework. Sustainability, 13(9), 5015. https://doi.org/10.3390/su13095015
Shaddady, A. (2023). Unveiling the Dynamics of Financial Institutions and Markets in Shaping Economic Prosperity in MENA. International Journal of Financial Studies, 11(4), 148. https://doi.org/10.3390/ijfs11040148
Tarawneh, A., Abdul-Rahman, A., Mohd Amin, S. I., & Ghazali, M. F. (2024). A Systematic Review of Fintech and Banking Profitability. International Journal of Financial Studies, 12(1), 3. https://doi.org/10.3390/ijfs12010003
Torre Olmo, B., Cantero Saiz, M., & Sanfilippo Azofra, S. (2021). Sustainable Banking, Market Power, and Efficiency: Effects on Banks’ Profitability and Risk. Sustainability, 13(3), 1298. https://doi.org/10.3390/su13031298
Wang, K., Yu, S., Mei, M., Yang, X., Peng, G., & Lv, B. (2023). ESG Performance and Corporate Resilience: An Empirical Analysis Based on the Capital Allocation Efficiency Perspective. Sustainability, 15(23), 16145. https://doi.org/10.3390/su152316145
Wang, L.-H., & Cao, X.-Y. (2022). Corporate Governance, Financial Innovation and Performance: Evidence from Taiwan’s Banking Industry. International Journal of Financial Studies, 10(2), 32. https://doi.org/10.3390/ijfs10020032
Winkler, M., Wegner, D., & Macagnan, C. B. (2023). The Maturity of Strategic Networks’ Governance: Proposal of an Analysis Model. Administrative Sciences, 13(5), 134. https://doi.org/10.3390/admsci13050134
Zhou, D., Saeed, U. F., & Agyemang, A. O. (2024). Assessing the Role of Sustainability Disclosure on Firms’ Financial Performance: Evidence from the Energy Sector of Belt and Road Initiative Countries. Sustainability, 16(2), 930. https://doi.org/10.3390/su16020930
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Antonius Ary Setyawan, Klemens Mere, Loso Judijanto, Irwan Moridu, Alfiana Alfiana

This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA).