The Role of Corporate Governance in improving the Regulatory Ranking of Iranian Private Banks

The health of a bank helps to maintain the trust and confidence of the bank and also the interests of the beneficiaries. But balancing the interests of all stakeholders requires improving corporate governance in banks. Given the importance of the issue, this paper examines the effect of corporate governance on bankschr('39') regulatory rankings. For this purpose, the required criteria have been measured using the financial statements of the Iranianchr('39')s private banks in the period of 2006-2018 and the principles of the Basel Committee in the field of corporate governance. Then, the panel data method and Kaplan Meier were used to measure the effect of corporate governance on the regulatory rank. The results indicate good transparency and disclosure have positive and significant effect and board of directors has negative and significant effect on improving bankschr('39') regulatory rating. But good accountability has not effect on bankschr('39') regulatory rating. The degree of effectiveness of the board of directors is more important than other criteria of good transparency and disclosure, good accountability and transparency. Comparing with a good measure of accountability has a greater impact than others on improving bankschr('39') regulatory rating. Also, the more banks comply with corporate governance principles, the less time they will have to improve their regulatory rank. This is a shorter time for the board to be effective.