Actualidad

“Corporate governance principles for banks” by Basel Committee on Banking Supervision

Published in July 2015

In July the Basel Committee on Banking Supervision (BCBS) published its principles of corporate governance for banks.

 The document presents thirteen fundamental principles emphasising the critical importance of effective corporate governance for the proper functioning of the banking sector, and more specifically the essential role played by their boards of directors in implementing efficient systems to achieve sounder risk management and decision making.

It emphasises the relevance of the collective competence of the board of directors as well as the obligation of individual board members to devote sufficient time to their mandates and to keep abreast of developments in banking.

It also provides guidance for bank supervisors in evaluating the processes used by banks to select members of the board and senior management.

These principles supersede the principles published in 2010, defining a framework of purview for banks and supervisors to promote sound risk management systems and transparent decision-making in order to reinforce market confidence in such institutions and help create a more robust banking system as a whole.