FRANKFURT: Corporate governance is very much an issue of the day, both in the East and in the West. In the countries emerging from the communist block the question of who will ultimately replace the state as the monitor of company performance is one on which the viability of the new market economies might very well depend. Given the complexity of the institutions underpinning the financial markets in the developed economies and the difficulty of establishing them in the transition countries, many have looked to the German "universal banks" as a model for the postcommunist countries.
FRANKFURT: Corporate governance is very much an issue of the day, both in the East and in the West. In the countries emerging from the communist block the question of who will ultimately replace the state as the monitor of company performance is one on which the viability of the new market economies might very well depend. Given the complexity of the institutions underpinning the financial markets in the developed economies and the difficulty of establishing them in the transition countries, many have looked to the German "universal banks" as a model for the postcommunist countries.