Effective corporate governance is key for both banking firms and the economic/social system, account being taken of the externalities of credit institutions. Among the many and complex facets of good governance a primary role is played by the fit and proper assessment of board members. Since 2014 the ECB has taken exclusive responsibility for taking decisions on the appointment of the management bodies of all “significant” credit institutions in the EU. The supervised entities maintained the primary functions of selecting and nominating individuals for the management body, who had to comply with objective requirements for “suitability”. Correspondingly, the Banca d’Italia issued a supervisory ruling (April 2015). The EU regulatory framework has been affirmed and updated by the ECB in May 2018. The adaptation and transposition process has taken place in Italy in successive steps, first and foremost a Decree of the Ministry of Economics and Finance (Decreto MEF 169/2020). This was completed by a Supervisory Report of the Banca d’Italia (May 2021). According to the new surveillance rules in Italy, the governing body of a bank acquires – as the competent organ – primary responsibility for assessing fitness and propriety also in respect of subjective – enlarged and extended – criteria. Attention is drawn in this paper to possible drawbacks, in terms of principles and practical applications, of the new regulatory framework.
Requisiti degli esponenti aziendali negli intermediari finanziari: spunti di riflessione (Fit and proper requirements for banks' board members: points for reflection)
MASERA R;
2021-01-01
Abstract
Effective corporate governance is key for both banking firms and the economic/social system, account being taken of the externalities of credit institutions. Among the many and complex facets of good governance a primary role is played by the fit and proper assessment of board members. Since 2014 the ECB has taken exclusive responsibility for taking decisions on the appointment of the management bodies of all “significant” credit institutions in the EU. The supervised entities maintained the primary functions of selecting and nominating individuals for the management body, who had to comply with objective requirements for “suitability”. Correspondingly, the Banca d’Italia issued a supervisory ruling (April 2015). The EU regulatory framework has been affirmed and updated by the ECB in May 2018. The adaptation and transposition process has taken place in Italy in successive steps, first and foremost a Decree of the Ministry of Economics and Finance (Decreto MEF 169/2020). This was completed by a Supervisory Report of the Banca d’Italia (May 2021). According to the new surveillance rules in Italy, the governing body of a bank acquires – as the competent organ – primary responsibility for assessing fitness and propriety also in respect of subjective – enlarged and extended – criteria. Attention is drawn in this paper to possible drawbacks, in terms of principles and practical applications, of the new regulatory framework.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
