Complexity of Bank Structures, Off-Balance Sheet Entities, Disclosure and Transparency
Francesco de Zwart
Additional contact information
Francesco de Zwart: University of Adelaide
Chapter Chapter 37 in The Key Code and Advanced Handbook for the Governance and Supervision of Banks in Australia, 2022, pp 1005-1020 from Springer
Abstract:
Abstract Chapter 37 of the Stage 2 Key Code and Advanced Handbook examines the complexity of bank structures, off-balance sheet entities, disclosure and transparency. We begin with a discussion of off-balance sheet entities and the relational approach and identify that the separate legal entity principle can affect group-wide risk policy and disclosure. We then move to consider complex and opaque bank structures including the complexity of bank structures and directors’ duties to the entity, boards of parent companies and that complexity makes oversight by non-executive directors problematic. We then construct the [NEDBankStructInfo] (−) variable for non-executive directors recognising that complex and opaque bank, group and entity structures result in a reduction in decision quality and delineation and disclosure of powers, duties and lines of responsibility with a coverage/rating of −4/50.00 rprox. There follows a discussion of complex and opaque bank financial instruments including complexity of financial products and lack of control. Focus then shifts to bank (continuous) disclosure and transparency and structured products including ASX continuous disclosure obligations and ASX information and facilities for security holders. We recognise that information asymmetry extends beyond shareholders and consider principles for transparency and disclosure. For disclosure at the structured-product level, we review deficiencies in the quality of decision-making by non-executive directors and deficiencies in the transparency and timing of reporting and internal and external monitoring. For disclosure at the financial institution level, we recognise risk disclosure, valuation disclosure and liquidity disclosure.
Keywords: Complexity; Opaque bank structures; Off-balance sheet entities; Complexity and NED oversight; Complex and opaque financial instruments; Continuous disclosure; Transparency; Disclosure at structured-product level; Disclosure at financial institution level (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-16-1710-2_37
Ordering information: This item can be ordered from
http://www.springer.com/9789811617102
DOI: 10.1007/978-981-16-1710-2_37
Access Statistics for this chapter
More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().