Bank Failures: Examining Corporate Governance Principles And Practices Of Indigenous Banks In Zimbabwe And Their Impact On Organizational Effectiveness

The health of the banking industry is strongly dependent on the state of corporate governance in an economy. The adoption and enthronement of sound corporate governance principles and practices is regarded as important in ensuring bank organizational effectiveness at institutional, industry and inclusive levels. The inclusive level of organizational effectiveness takes into consideration all the stakeholders of the bank. The Zimbabwean economy has experienced persistent indigenous bank failures allegedly due to internal corporate governance deficiencies during the period 2000-2015. The present study sets out to address two research concerns (1) to identify and discover Zimbabwean indigenous banks’ corporate governance irrationalities with regard to organizational effectiveness and, (2) to achieve regulation change through understanding and explaining the impacts of the adopted corporate governance principles and practices on organizational effectiveness. This research examines the corporate governance mechanisms of Zimbabwean indigenous banks and their impact on organizational effectiveness. The research adopts a methodological pluralism approach using the phenomenology and symbolic interactionism epistemological strands. These techniques are used in an effort to address the cardinal points of this research being to identify, discover, understand, explain, predict and recommend controls to the bank failures in light of internal corporate governance deficiencies phenomenon in Zimbabwe. Based on these cardinal points, this study offers a unique insight and constructionist inquiry into the multidimensional subject of corporate governance in banking sector in Zimbabwe for the period under study. The unique insight is proffered through the examination of internal corporate governance principles and practices of the Zimbabwean indigenous banks.