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THE CONCEPT OF CORPORATE GOVERNANCE IN THE BANKS

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Author(s): Petra Marković

Journal: Zbornik Radova Ekonomskog Fakulteta Istočno Sarajevo
ISSN 1840-3557

Volume: 5;
Start page: 335;
Date: 2011;
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Keywords: corporative management | financial institution | financial resources

ABSTRACT
Corporative management is a newterm in this area, which resulted from transition ofstate to private sector and with establishing of themarket economy model. Market economyprinciples, as a logical consequence, necessitateestablishment of financial institutions which makefinancial resources allocation through establishedmarket mechanism. In such environment, financialinstitutions play the key role in optimal allocationof financial resources and, at the same time, theyare the carrier of investment attractiveness risk.The primary goal of corporative management, as asinergy of heterogeneous elements and as a systemwhere categories of ownership and managementare separated, is to provide the increase ofconfidence in financial system as an external riskcarrier.
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