The Basle Committee on Banking Supervision used the one of the OECD in its Enhancing Corporate Governance of Banking Organizations in September 1999 and pointed out that it is of vital importance for a bank to possess strong corporate governance.
Central to good corporate governance structure of commercial banks are: clearly definition of relationships between the Board of Directors, top Management, the Supervisory Committee, shareholders and other interest parties, establishment of effective incentive and restraint mechanism and open and transparent disclosure mechanism, in a bid to safeguard conformity of operation and top Management of banks with the interests of shareholders and other interest parties.