The 2008 financial crisis highlighted two main issues in the financial sector: 1) the inadequacy of regulations in addressing the stability problem and the excessive risk-taking problem, and 2) the need for effective corporate governance mechanisms to address these problems. The corporate governance structure is especially important in the financial sector due to the ability of managers to take on high levels of risk without having to deal with the negative consequences of the risk (Zagorchev & Gao, 2015). It is also instrumental in influencing the effect of regulations on financial stability (Kuranchie-Pong et al., 2016). Strong internal governance mechanisms in the financial sector reduce the need for regulatory bodies to intervene with costly measures so that risk-taking is constrained