Impact of corporate governance on performance second tier banks

Abstract

Every year in the Republic of Kazakhstan the number of second-tier banks is decreasing. News portals quarterly publish information about the revocation of a banking license from a particular bank. The post-COVID situation in the country has shown that not every second-tier bank will stay afloat. It also shows that it is important to have an effective corporate governance system. Corporate governance directly affects the financial performance of the organization.  Respectively, it is a necessary condition for the successful operation of the Bank and ensuring its competitiveness in the market.The purpose of the article is to show the impact of corporate governance on the main financial indicators of the bank on the basis of a comprehensive review and analysis of corporate governance in large second-tier banks of the Republic of Kazakhstan, to determine the essence of corporate governance, features, and principles of corporate governance and management methods in large second-tier banks.The article considers the classification of committees of the Board of Directors, and the structure of the Board of Directors of large banks in Kazakhstan. The article provides the number of independent directors, and age information.