The aim of this study is to understand and analyse the relationship between corporate governance (CG) and banking governance (BG) in Conventional and Islamic banking systems. The reason for choosing this topic was because the regulations and banking systems within Conventional banks are differently in comparison to Islamic banks, which means that their corporate governance and banking governance are influenced by different mechanisms and therefore regulated differently. Since Conventional banks stands for a small amount of Islamic banks in their markets and Islamic countries do have Conventional banks in theirs, made this topic a good case study. Furthermore is Sweden a Conventional country where they don’t offer Islamic financial services and the UK is a Conventional country where they do, which was an interesting fact since both of them are European countries with similar regulations. The author of this thesis chose qualitative, semi-structured interviews, where six persons: three from Sweden and three from the UK stood for answers toward their banking systems. Since these respondents were standing on a high position within their organizations did they have the knowledge needed to answer the questions asked. The result showed that the relationship between CG and BC in Conventional and Islamic banking systems have an impact in the way different types of banks operate. Identifying the Conventional and Islamic banks differences and assessing on how the Corporate Governance and Banking Governance do operate solves the complexity in the system. Based on the findings, countries that are applying the Conventional system need to expand their regulations and mechanisms so that other systems could operate without a need for changes in their own. They also need to expand their knowledge, where the population needs to be familiar with other banking systems and services as well.