Bank boards and professional misconduct: New metrics needed (Louis Nguyen, Jens Hagendorff, Arman Eshraghi, VOX)

Banks are regularly under scrutiny for their professional and ethical behaviour. This column assesses the role of boards in monitoring and advising conduct, and offers new insights for how to structure bank boards to prevent misconduct. Conventional board measures such as board independence and financial expertise have no measurable impact on misconduct being committed or detected. Instead, governance metrics revolving around CEO connections warrant more attention from regulators, investors, and governance activists.

http://voxeu.org/article/when-bank-boards-get-too-cosy-expect-misconduct