Introduction The issue of corporate governance failure has dominated business debates since the last decade. And it seems like we're not going anywhere. For example, it has continued to emerge within UK banks, a worrying trend for the UK economy. Unlike other activities, corporate governance of banks is expected to deliver positive outcomes to a wider range of stakeholders: shareholders, depositors, creditors and regulatory bodies, etc. (Spong, K, R and Sullivan, R, J. 2007). In contrast, many UK banks, such as Co-operative, RBS and Barclays, have had weaknesses in the way these companies are run. This course aims to examine issues relating to corporate governance failure at the Royal Bank of Scotland (RBS). It also seeks to establish the relationship between the effectiveness of corporate governance and the profitability of UK banks. A very recent issue in this area will also be included towards the end of the course. Why corporate governance Empirical evidence shows that good corporate governance promotes effective monitoring of corporate resources; effective risk management and greater transparency. It also helps achieve and maintain public trust in the way companies are run. That is, it is a means to keep companies profitable. A study by Epstein et al., (2012) highlighted that, both from the perspective of long-term internal profitability and that of external shareholders, there is an indication that good board governance adds value to a company. organization. Conversely, poor corporate governance can contribute to company/business failure, which could, in turn, cause a company's liquidity crisis leading to insolvency or total collapse. What is corporate governance? The Organization for Economic Co-operation and Development (... ... middle of paper ... Corporate governance can influence corporate performance. A board of directors characterized by an atmosphere of change and ready to learn from the mistakes of the past and a sound risk management system would improve the financial value of banks a single model of good corporate governance suitable for all companies There are some principles initiated by the OECD, Basel Committee on Banking Supervision, Walker report and others that they cover the following areas: shareholder rights; role of stakeholders, disclosure and transparency and board responsibility. Furthermore, the World Bank has proposed guidelines for good corporate governance in the financial sector quality of a company's performance and results http://www.federalreserve.gov/newsevents/press/bcreg/20140326a.htm.