In this respect, it is necessary that ‘independent’ directors are truly independent; that is, independent not only of the management but also of controlling shareholders while discharging their duties. They have to always remember that their loyalty is to the bank and no one else. Directors should keep watch on actual or potential related party transactions.
As you may know, we have created a separate section of our website devoted to providing data, explanations, and analyses bearing on these topics and related issues.