Corporate Governance Disclosure in Slovak Banks: A Research Overview

Introduction

In recent years, corporate governance (CG) has emerged as a crucial aspect of ensuring transparency and accountability in financial markets. In Slovakia, where the business environment is rapidly evolving, understanding the application of CG principles in companies, particularly banks, has become increasingly important.

The Importance of Corporate Governance Disclosure

Effective corporate governance is essential for promoting trust among investors, enhancing market stability, and supporting economic growth. To achieve these goals, accurate and timely disclosure of CG practices is necessary. The authors of this research paper, Janka Grofčíková, Katarína Izáková, and Dagmar Škvareninová, emphasize the significance of CG disclosure in Slovakia.

Key Sources of Information

The research draws on various sources to provide a comprehensive understanding of corporate governance practices in Slovak banks. These include:

• Slovak Association of Corporate Governance: A non-profit organization that promotes good corporate governance practices in Slovakia.
• Bratislava Stock Exchange: The primary stock exchange in Slovakia, which plays a vital role in facilitating capital market transactions and promoting transparency.
• Code of Corporate Governance in Slovakia (2016): A set of guidelines outlining best practices for CG in Slovak companies.
• Financial Stability Reports 2004-2019 published by the National Bank of Slovakia (NBS): A series of reports that provide insights into the financial stability of Slovakia, including trends and challenges facing the banking sector.

Research Focus

The research paper explores the application of CG principles in Slovak companies, with a specific focus on disclosure practices in banking institutions. The authors investigate various measures and decisions related to bank supervision by the National Bank of Slovakia (NBS), such as Decision no. 4/2015 on designating locally systemically important banks.

Conclusion

The research provides valuable insights into the corporate governance landscape in Slovak banks, highlighting the importance of accurate disclosure practices for promoting transparency and accountability in financial markets. By exploring the application of CG principles and NBS measures related to bank supervision, the authors contribute to a deeper understanding of the complex relationships between corporate governance, banking institutions, and economic stability.