International Banking Regulators Propose Revised Corporate Governance Principles: Reinforce Board Responsibilities for Risk Oversight and Governance Culture
Author: George W. Madison.; Holly J. Gregory.; Connie M. Friesen.; Neil E. Horner.
Source: Volume 28, Number 04, March/April 2015 , pp.51-55(5)
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Abstract:
In October 2014, the Basel Committee on Banking Supervision of the Bank for International Settlements issued its consultative Guidelines on Corporate governance principles for banks (the “2014 Principles”). Although the 2014 Principles are not binding on national banking authorities, they have already been echoed in the United States in the speeches and congressional testimony of senior banking regulators, and are very likely to be reflected in proposed regulations of U.S. banking supervisory authorities. Regulated financial institutions should consider undertaking a governance and compliance audit to ensure that the roles, responsibilities and governance structure of their boards of directors and relevant committees have been updated to reflect a risk management framework consistent with the 2014 Principles.Keywords: corporate governance principles for banks; bank risk management; risk culture; Basel Committee on Banking Supervision
Affiliations:
1: Sidley Austin LLP; 2: Sidley Austin LLP; 3: Sidley Austin LLP; 4: Sidley Austin LLP.