IMPACT
This article will help government managers, regulators, and standard setters to improve risk management and disclosure in emerging economies. Evidence from in-depth interviews will guide government-owned banks in Bangladesh to effectively manage and voluntarily disclose risk management practices. The authors argue that legitimization might be a strategy for government-owned banks in pursuing to survive in the finance industry.
ABSTRACT
Government-owned banks in emerging economies commonly suffer from a lack of good governance, non-performing loans, undetected money laundering and other management malpractices. Managing and disclosing risks are significant issues for managers of government-owned banks. This article explores the managerial perception of risk disclosure by these government banks. Data were collected through in-depth interviews with 35 executives from government banks, government regulatory, and monitoring authorities. Institutional pressure, along with risk committees and board independence, are critical contributing factors for risk disclosure.
Disclosure statement
No potential conflict of interest was reported by the author(s).