In order to accomplish a sounder banking industry, banks are challenged to adopt and pursue good governance practices. This challenge relates to decisions and activities conducted by top management and other inside stakeholders, but also increasingly to the collective pressures from, and evaluation measures adopted by, outside stakeholders. This book comprises a selection of high-quality research papers and provides insight into central issues such as deleveraging and other regulatory measures for strengthening bank stability. It includes empirical studies on the relationship between the board structures of banks and their financial risk-taking under extreme market conditions as well as on the financial crisis' impact on banks' lending capacity and the overall financial intermediation model. The book also includes in-depth analyses of the determinants of bank reputation and the future prospects of small banks