Extent of Commitment of Lebanese Banks to Principles of Governance (An Empirical Study)

The novel inclination towards applying principles of governance in banks constitutes a great challenge to banks around the world, especially in developing countries. It is especially challenging for Lebanese banks to apply principles of governance because its economy is passing through a very delicate period. This paper aims at studying the extent of commitment of Lebanese banks to principles of governance according to Basel Committee. It is of great importance that Lebanese banks should be committed to these principles to be able to face present and future challenges since applying principles of governance enhances trust of investors, shareholders and other related parties in addition to related international organizations which are closely watching the Lebanese economy. The researchers utilized a five-point Likert Style questionnaire which includes 56 items and asked employees of 10 banks operating in Lebanon to respond to them. Among those employees were board members, executives, internal auditors and heads of departments. The research reached some important findings, most importantly that Lebanese banks are totally committed to principles of governance. This enables Lebanese banks to have a positive impact on investors, shareholders and other parties, which might enhance the bank’s competitive position and attract a greater number of investors, depositors and stockholders