We expect high standards of corporate governance from the boards of New Zealand banks, and this expectation is reinforced by some quite severe penalties that could apply  1  According to IIP data as at September 2004. BIS Review 20/2005  1  should a bank's directors fail to properly discharge their responsibilities.
In the wake of the Enron-type corporate governance scandals and subsequent numerous reviews, the importance of good self-regulation has gained a lot more recognition recently with the passing of such legislation as the Sarbanes Oxley Act.