Financial Institution Governance

Definition ∞ Financial Institution Governance refers to the system of rules, practices, and processes by which financial institutions are directed and controlled. This framework ensures accountability, manages risk, and promotes ethical conduct across all operational levels. It includes oversight of regulatory adherence and internal controls.
Context ∞ As traditional financial institutions increasingly interact with digital assets, robust governance frameworks are critical for managing new risks associated with blockchain technology and cryptocurrency. Strong financial institution governance is necessary for ensuring compliance with evolving regulations and maintaining stakeholder trust in this expanding asset class.