Similarly, regulators have also placed heavy emphasis on imposing stricter regulatory regimes and hands-on approach towards ensuring sound corporate governance practices. These measures have encouraged the Boards and management of financial institutions to improve their governance practices and eliminate knowledge gaps.
The regulators also require the Boards to develop their capacity to assess the nature of risks keeping in view the size and complexity of the institutions on an ongoing basis. Similarly, the misaligned incentives and the remuneration of Directors and Executives of banks and financial institutions also came under scrutiny in the post-crisis reforms.