by swisscham in Business
A leading financial expert believes the new governance structures developed by Chinese banks could prove to be a globally significant innovation. Chinese banks are championing a unique corporate governance structure that could provide lessons for both Western and emerging markets, says Didier Cossin, professor of finance and governance at Switzerland’s IMD Business School. The 48-year-old academic, who has advised many banks around the world, says that Chinese banks have devised a structure which ensures checks and balances between different directors but also ensures the views of the state, a key shareholder, are heard. Cossin says such a structure is unfamiliar to Western banks because traditionally they do not have governments as key shareholders. Cossin believes this structure can provide an alternative model for banks in other emerging markets that have large state ownership.