THE IMPACT OF CORPORATE GOVERNANCE ON BANK PERFORMANCE

This article aims characterize the relationship between corporate governance and bank performance. We debated the possible interrelations between the mechanisms of corporate governance and performance and we analyzed econometrically the relation between the reflection of the governance principles in the annual bank reports and bank performances, expressed in the form of the level of cost efficiency and technical efficiency. The analysis was performed over a period of five years (2005-2009) for 3 bank groups. The obtained results show that the evolution of the corporate governance index is statistical significant correlated with both technical and cost efficiency.