A Proposed Framework For Bank Governance in Egypt

Abstract

The separation between ownership and control causes the agency problem, whereby the conflicts of interests between management and shareholders cause managers to operate the finn in their own interest instead of shareholders interests. There are many corporate governance mechanisms that can deal with the agency problems and protect the minority shareholders' rights. Therefore, corporate governance can be . defined as the set of mechanisms that deal with the agency problems between managers and shareholders and between controlling shareholders and minority shareholders. The Egyptian banking sector reform, as an integrated part of the economic reform, is the main reason behind the increasing demand for good corporate Governance in the Egyptian banking sector. This research focuses on providing an overview of the Egyptian corporate governance codes and principles, given the significance of Egypt as an emerging market in the MENA region. Furthermore, the corporate governance debate in emerging and developing countries is reviewed and finally some recommendations and policy implications for the Egyptian banks is offered