STRATEGIC DIRECTIONS FOR THE DEVELOPMENT OF CORPORATE GOVERNANCE IN BANKING INSTITUTIONS UNDER SUSTAINABLE DEVELOPMENT CONDITIONS

Abstract

Corporate governance in banking institutions has become increasingly important under sustainable development conditions because the quality of governance directly affects the resilience of banks, the consistency of strategic decisions, the effectiveness of supervisory mechanisms, and the ability of financial institutions to respond to regulatory, technological, and social change. The purpose of the article is to substantiate the strategic directions for the development of corporate governance in banking institutions under sustainable development conditions. The study is based on a combination of general scientific and special methods, including analysis, synthesis, comparison, generalisation, a systems approach, and the use of statistical and regulatory materials. The article examines the transformation of corporate governance priorities in banking institutions under the influence of sustainable development principles, the expansion of supervisory board responsibilities, the growing role of internal control systems, the integration of ESG risk management into the general governance architecture, and the increasing importance of data governance and digital transparency. Special attention is paid to the need to align strategic decision making with long term resilience objectives rather than with short term operational effectiveness only. It is argued that the strategic development of bank governance should be linked to stronger supervisory boards, integrated risk management, improved internal control, digitalisation of governance processes, and deeper transparency and accountability. The article also outlines the institutional preconditions that shape governance modernisation in Ukrainian banks, including ownership structure, asset quality, risk sensitivity, and the strengthening of accountability mechanisms. Prospects for further research are associated with the development of methodological tools for assessing the implementation of strategic governance directions in banks and with the design of integrated indicators for monitoring the maturity of corporate governance systems and the effectiveness of sustainable governance practices.