The impact of regulatory governance standards on board characteristics: Evidence from Australian credit unions

Abstract

[eng] Credit unions are mutual or cooperative financial institutions owned by members, who are also their customers, depositors and borrowers. Governance of mutuals is based on the democratic principle of ‘one member one vote’, and directors are drawn from and elected by the membership. This paper examines how regulatory governance standards have shaped the governance practices of Australian credit unions. While credit unions have a very different ethos from that of publicly-traded institutions, they face similar governance challenges, particularly in terms of the need to ensure board competence and effective control over management.