There are still governance problems in Italian banks: the government structures are redundant and the compensations are not adequate for the negative economic situation. There has been "progress", but "additional efforts" are needed. The warning comes from the number one of the Bank of Italy, Ignazio Visco, which this morning opened a conference on corporate governance at Palazzo Koch.
Visco recalled how on several occasions Via Nazionale "has drawn attention to aspects that are still problematic: lastly we focused on the costs connected with plethoric and excessively articulated governance structures, which must be simplified; on dynamics of remuneration systems that are not consistent with the current economic situation and are not sufficiently anchored to medium-long term results".
Bankitalia also intervened “on representation systems on the board – Visco continued – which do not guarantee adequate management control, especially in some sectors of the banking system (popular listed companies), and on the key role of capable and motivated independent directors. There was no lack of criticism and resistance to the corrective action of the Bank of Italy”.
As for the composition of the boards, according to the governor "the presence of women in councils should be increased and, more generally, diversity in its many meanings (age, type of experience, international projection, etc.): it broadens the perspectives of analysis, reduces the uniformity of behaviour, attenuates the procyclical effects with respect to exogenous shocks”.
Finally, broadening his gaze to the European perspective, Visco recalled that “important choices are being made and are ahead significant changes in the supervisory framework in Europe. Choices and changes that we believe are useful for the future of the European banking system and of the monetary union itself".
