A first complication that globally operating financial institutions are facing as a consequence of the globalization, relates to corporate governance, and especially head office oversight. Of course, a board of directors should approve and oversee the bank’s strategic objectives, and set a desired compliance culture.
The earnings performance of the fifty largest U.S. based bank holding companies as a group, which together represent more than three-fourths of all assets at bank holding companies, has clearly been subpar over the past two quarters and accounts for the industry's overall weak performance.