Compliance with Corporate Governance Mechanisms among Rural Banks

The study determined the compliance of rural banks with the corporate governance mechanisms. Using the descriptive method, the study surveyed 50 respondents through a researcher-made questionnaire. Statistical techniques include frequency, percentage and t-test. Majority of the rural banks are located in Misamis Oriental and established earlier than 2000. They have few branches with 6-15 employees and a starting capital of P500, 000 below. The present capital is between P500,000 to P20,000,000 . Most rural banks complied with the corporate governance mechanisms such as Board Chairman’s and members’ responsibilities and issuances of guidelines. Sex was a differentiating factor in the compliance to corporate governance mechanisms.

 

Keywords – Compliance, corporate governance, rural banks,