The cross-border operations of banks provide an added impetus for convergence in such standards. Public policy framework in regard to corporate governance typically involves multiplicity of agencies in all countries. For instance, in India, these are Department of Company Affairs; Securities and Exchange Board of India in respect of listed entities apart from the banking regulator in respect of banks.
Harmonising their policies in a dynamic setting is a daunting task for policy makers and adds to the complexities of the corporates or banks concerned to ensure compliance. In regard to sectors such as banking in India where ownership of government is dominant, there are additional issues.