Banking institutions hold significant importance in shaping the economic progression of a nation. Currently, the banking institutions work in a globalized circle and thus these entities are universally controlled. It is further important to understand that issues in banking functions could severely affect the world economy (Lozano, Martínez and Pindado, 2016). The implementation of good corporate governance in banking institutions assist in economic progression while bad corporate governance can lead to severe recession in economies. The recent economic recession had seriously affected Royal Bank of Scotland (RBS) and the bank had to face issues like government funding, bailment etc.