ECB launches consultation on guide to assessments of board members
- ECB explains supervisory criteria and procedures for determining suitability of bank board members
- ECB publishes draft guide for consultation with public
- Consultation period runs from today until 20 January 2017
The European Central Bank (ECB) today launches a public consultation on a draft guide to fit and proper assessments. The guide explains how ECB Banking Supervision evaluates the qualifications, skills and proper standing of a candidate for a position on the board of a bank, for example as chief executive officer or supervisory board member.
The quality of the top management in banks is crucial for the stability of a financial institution and the banking system as a whole. The role of the ECB is to make sure that the banks comply with the rules which aim to ensure good governance in banks.
In its fit and proper assessments, ECB Banking Supervision applies the relevant Union law and its transposition in the national law of the 19 euro area countries. Where Union law leaves room for Member States to determine how it will be transposed, national differences may continue to exist.
Both the national competent authorities and the ECB are involved in the assessment. The guide builds on the draft guidelines on the assessment of the suitability of members of the management body and key function holders under Directive 2013/36/EU and Directive 2014/65/EU of the European Securities and Markets Authority and European the Banking Authority, which were published for consultation by the EBA on the 28th October.
The outcome of this consultation, which starts today and runs until 20 January 2017, will be taken into account when the guide is finalised. Relevant documents, comprising the draft guide and frequently asked questions, are available on the ECB’s Banking Supervision website.
The ECB will hold a public hearing as part of this consultation on 13 January 2017, at its premises in Frankfurt am Main. The hearing will be webcast live on the ECB’s Banking Supervision website. Information on registering for the public hearing and on how to submit comments can also be found on the website. Following the public consultation, the ECB will publish the comments received, together with a feedback statement and an assessment of the comments.
For media queries, please contact Rolf Benders, tel.: +49 69 1344 6925.