Banks: Bankitalia, slimmer boards with at least a quarter of independents
New provisions on Radiocor corporate governance
Thinner banks' boards of directors by limiting the number of directors, with a diversified composition and the presence of at least a quarter of independent directors. The Bank of Italy issues the new supervisory provisions on the corporate governance of banks by introducing innovations aimed at strengthening governance arrangements.
Among other things, Bankitalia underlines the need for the board to concentrate on issues of strategic importance, for the appointment process to be transparent and for the figure of the president to have enhanced duties and an impartial role, even with the ban on being a member of the executive committee.
The new rules implement the CRD IV directive for aspects relating to governance, take into account the indications of the European banking authority and other international bodies, including the IMF and were drawn up at the end of the public consultation which ended on 23 January. The objective is to strengthen the governance structures of the banks, the quality of which, explains Bankitalia, is a determining factor for the stability, efficiency and competitiveness of the credit system.
Among the other main changes, we note the need for the board to concentrate on issues of strategic importance and for it to have a diversified composition, also in terms of professionalism and gender. The establishment of committees made up of non-executive directors, mostly independent, is also envisaged, intended to better support the board of directors in delicate and complex matters such as risks, remuneration, appointments.
The new provisions (published in their entirety on the Bank of Italy website) supplement the public information obligations, reads a press release, to allow the market to carefully evaluate the governance choices of the banks and provide for a transitional regime defined as appropriate in the adjustment by the credit system.
For the amendments to the Articles of Association, the first useful date of the shareholders' meetings of this year is indicated, with exceptions by 2017 for the implementation of a good number of provisions.
