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2026 Governance Best Practices Survey Unveiled

In a dynamic landscape for financial institutions, the Bank Director's recent survey highlights transformative trends in governance practices. Released on July 28, 2026, the survey underscores how bank boardrooms are evolving amidst a surge in merger activity and the increasing significance of artificial intelligence (AI).

Key Insights from the Survey

The Governance Best Practices Survey, conducted by Bank Director and sponsored by Bradley Arant Boult Cummings LLP, reveals that boards are actively re-evaluating their skills and policies to adapt to rapid changes in the banking sector. Notably, 44% of boards now possess expertise in mergers and acquisitions (M&A), marking a 10-point increase from the previous year. This shift corresponds with a rise in mergers, attributed to expedited regulatory approvals and favorable valuations.

Artificial intelligence is emerging as a pivotal challenge in governance. The survey reveals that 21% of respondents have a director with AI expertise on their board—a sign of the growing relevance of this technology. Furthermore, nearly half of the surveyed boards discussed AI-related risks at full meetings, while 60% have made policy adjustments tied to AI usage. However, a significant portion, 21%, admitted that AI risks were not adequately overseen by their boards.

The Role of Governance

Robert Maddox, a partner at Bradley, emphasizes that effective governance is crucial for the stability of banking institutions: "Governance by the board of directors of the bank is the backbone of that institution." The insights from the survey highlight the need for boards to not only maintain their current expertise but also prepare for future shifts, particularly as 57% of respondents anticipate the retirement of one or two directors by 2027.

With the expectation of generational change within boards, recruitment strategies are also evolving. A significant portion of boards (83% for directors and 70% for executives) rely on personal networks for attracting new talent. Emily McCormick, VP of editorial and research at Bank Director, emphasizes the importance of board leaders being intentional in their recruitment strategies, noting the need to look beyond traditional channels as the necessary skills evolve.

Highlights from the Practices

• - AI in Boardroom Activities: While a minority of boards (26%) utilize AI for tasks such as preparing meeting minutes or transcribing discussions, the conversation around AI's impact continues to gain momentum.
• - Virtual Meeting Participation: A remarkable 87% of boards allow for virtual attendance at meetings, signaling a shift towards more flexible governance structures.
• - Board Assessments: Approximately 39% of boards conduct annual assessments, with many reporting significant changes—56% revisited their strategic plans and 51% adjusted meeting agendas and committee structures.
• - Policy Adjustments: Over half the respondents have revised their policies since January 2025, with key areas including liquidity monitoring (64%) and AI reporting (60%).
• - Debanking Scrutiny Awareness: Only 20% of boards have explored the scrutinization of institutions for debanking activities based on political beliefs or affiliations, suggesting a potential oversight in this area.
• - Stronger Strategic Planning: Many boards express a desire for better measurement of their risk appetite and more comprehensive competitive analyses.

Conclusion

The insights gleaned from the 2026 Governance Best Practices Survey provide a comprehensive overview of evolving practices within bank boardrooms. As financial institutions navigate the complexities of M&A and AI, the findings stress the importance of proactive governance and forward-thinking recruitment strategies. For the full report and additional insights into governance practices, visit BankDirector.com.