A Dissertation Submitted in Partial Fulfilment of the Requirement for Award of
the Degree of Masters Business Administration
The aim of the study was to assess the influence of Corporate Governance towards
organisational performance in the Banking Industry, the case of two commercial
banks. Four objectives were adapted as the key guide of the study which were
examining the legal and regulatory framework influencing corporate governance,
the internal controls affecting the Corporate Governance towards performance, the
external controls affecting Corporate Governance towards Bank performance and
the board independence and composition affecting Corporate Governance. Case
study research design was utilised using a sample size consisting of 15 employees
from two selected banks Purposive sampling technique was applied and primary data
collection was done using interviews and questionnaires.
Study findings revealed that there are regulatory and legal framework on corporate
governance. Findings also show that most of the participants are aware of the current
regulations and Acts governing corporate governance but are not aware of the
technicalities of the laws, that internal controls are not effectively undertaken in the
Banks, that external auditing but not on timely basis as demanded by the Act while
external auditors are always provided with limited information for their effective
evaluation.
The findings confirmed that board composition contributed in a major way in
assessing how well the bank is performing. This highlight how crucial it is for the
board to be independent, competence as well as the make-up of the members also
essential. Overall, this is key in ensuring sound financial decision are taken; hence
better achievement by the banks.