On Monday 15 May, the European Central Bank (ECB) published its guide on assessing the integrity and aptitude of banks' top management.
“Assuring the quality of banks' top management is crucial to ensure their stability, as well as that of the banking system as a whole”, an ECB press release reads. Although banks are primarily responsible for appointing their own senior management, it is up to the ECB, as single supervisor in the framework of banking union in the Eurozone, to assess whether banks are compliant with the rules on governance.
This assessment is carried out on the basis of five criteria of integrity and aptitude listed in the capital requirements directive (CRD IV): reputation, skills, conflict of interest, independence of thought, time commitment and the collective suitability of the management body.
This guide, drafted in close collaboration with the European Banking Authority, aims to harmonise the implementation of these criteria and includes guidelines for the supervised entities. Although it provides for the banks to refer to it when assessing the suitability of their senior managers, it is not a legally binding document. (Original version in French by Marion Fontana)