Foreign ownership boosts corporate governance in banks, improving financial stability.
The article discusses how corporate governance in banks is important for their ownership in the global environment. The researchers looked at different factors like commitment, transparency, and control in Central and Eastern European countries. They found that higher foreign ownership is linked to better corporate governance, but the relationship with state ownership is unclear. To prevent bad banking practices, it's not just about rules but also about the overall culture and how managers are seen, no matter who owns the bank.