RBI’s Mahapatra seeks greater surveillance of corporate governance

Reserve Bank of India Executive Director Shri Mahapatra calls for greater vigilance in corporate governance at financial institutions to avoid further crises. Shri Mahapatra, the executive director at the Reserve Bank of India, on January 21 said the recurring corporate governance crises in both the developed and developing economies suggests "eternal vigilance" must be exercised at all times. At the Convocation Ceremony of Chetana's Institute of Management & Research in Mumbai, India, Mahapatra said: "Although our banking sector has emerged largely unscathed from the crisis, there is definitely a need to do some introspection as there have been some issues of corporate governance failure here too. The incidents of banks misselling forex derivatives to clients have been well publicised and are one such example. There is therefore a need on the part of banks and financial institutions to be more responsive to their obligations towards the larger public interest." Mahapatra said a study of the governance failures in various institutions during the crisis helps in understanding that the measures and reforms to address the governance failures in one context may not be as effective in another, and that the timing and focus of reforms should reflect the economic and institutional realities of the country concerned.  
http://www.centralbanking.com/central-banking/speech/2140568/rbi-s-mahapatra-seeks-surveillance-corporate-governance