Moreover, some banks operate as part of industrial/commercial groups while a large number of them have  BIS Review 33/2008  1  exposure to the non-bank financial sector through ownership and control. In such a scenario, transparency and fairness in banks’ lending and investment decisions, particularly those concerning group companies, becomes a crucial requirement.
Finally, banks need to adopt good governance practices and customer service standards in order to build public confidence in credibility of their operations. Banks operate in a highly vulnerable environment where bonafide or perceived impression of malpractices in a bank’s dealings could trigger a run on its deposits.