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In the following passage there are
blanks, each of which has been numbered. These numbers are printed below the
passage and against each, five words suggested, one of which fits the blank
appropriately. Find out the appropriate word in each case.
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Banks are
...(1)... from other corporate in important ...(2)... and that makes
corporate governance of banks not only different but also more critical.
Banks facilitate economic growth, are the ..(3)... of monetary policy
transmission and constitute the economy’s payment and settlement system. By
the very ...(4)... of their business, banks are highly leveraged. They accept
large amounts of un collateralized public funds ...(5)... deposits in a
fiduciary capacity and further leverage those funds through credit creation.
Banks are interconnected in diverse, complex and opaque ways underscoring
their ‘contagion’ potential. If a corporate fails, the ...(6)... can be
restricted to the stakeholders. If a bank fails, the impacts can ...(7)...
rapidly through to other banks with potentially serious consequences for the
...(8)...financial system and the macro economy. While regulation has a
...(9)... to play in ensuring robust corporate standards in banks, the point
to recognize is that ...(10)... regulations is a necessary, but not a
sufficient condition for good corporate governance. In this context, the
relevant issues ...(11)... to corporate governance of banks in India are bank
ownership, accountability, transparency, ethics, compensation, splitting the
posts of chairman and CEO of banks and corporate governance under financial
holding company structure, ...(12)... should engage adequate attention.
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