Sitting on banks’ boards: suitability and better governance is the second edition of the training for bank board’s members organized in the framework of the Bank Board Academy (BBA). This course will gather an international faculty of regulators, supervisors, and academics together with bank and finance professionals. It is open to Banks’ Non-Executive Directors (current and prospective), Board secretaries and secretariat officers, members of board committees, regulatory and government affairs managers and Board Advisory consultants.
This project aims at stimulating and enhancing independent board members’ interactions with supervisors and regulators and among themselves:
to ensure consistency and homogeneity of banks’ governance across Europe
to be best equipped by:
Keeping up to date and sharing key experiences
Giving tools and instruments for board members to play their role in the design and execution of the overall strategy.
The BBA training will provide a unique space for discussion and direct dialogue between supervisors and European banks’ board members on the most relevant governance issues. The programme of this new edition includes four core modules comprising strategic briefings, delivered by practitioners and academics, to set the overall context and introduce key topics on bank board governance, the specific roles and responsibilities individual and collective) of board members, the culture and dynamics of decision making in boards and the implications of the new SSM’s fit and proper assessments guidelines for both, board composition and functioning. The latter will also include the key aspects of governance and risk management of the SREP evaluation process.
Core modules:(i) Overview of Boards in Europe (ii) Fit and Proper (FAP) Assessments: New Fit and Proper guide for the SSM (iii) Board effectiveness and on-going supervision (iv) Culture and behaviour in boards.
Corporate governance and the suitability of a board of directors play a crucial role in enhancing banks’ risk management capacity and financial stability. The current EU regulatory and supervisory framework sets out a comprehensive list of requirements and guidelines for bank boards, their responsibilities and organisational structure. In its first part, this module will deliver an overview of bank boards in Europe by providing an outlook of their main responsibilities focusing on business and risk strategy, risk culture, and will highlight the current challenges faced by board members in relation to upcoming legislative packages in the context of new trends such as the increasing use of information technologies, digital resilience, ESG, and also AML. The second part will address issues related to diversity on bank boards, remuneration aspects, and the representation of non-executive directors.
MODULE 2. FIT AND PROPER ASSESSMENTS: NEW FIT AND PROPER GUIDE FOR THE SSM
Course coordinators: Daniela Schackis (Deputy Director General in Banking Supervision, ECB) and Ana Campos (Head of the Fit and Proper Division in Banking Supervision, Directorate General SSM Governance & Operations, ECB)
The suitability, fitness and propriety of bank board members have always been on the EU regulatory agenda and are crucial to ensure good governance and a sound and stable banking sector. The concept of “fit and proper” has emerged as an important standard for corporate governance in the EU and the suitability of board members is monitored and assessed on the basis of different features, such as individual characteristics, personal qualifications, education, professional training, experience, time commitment, among others. However, there is still a wide variety of national practices despite the harmonisation efforts at EU level and the criteria and requirements set for bank board members are often not clarified.
The guidelines and criteria for the assessment of bank board members are constantly reviewed and updated in order to achieve further improvements. Recently, a new guide for the Fit and Proper assessments has been introduced for the SSM. This module will approach participants to the regulatory framework and guidelines for suitability assessments and the new tools and criteria. It focuses on helping board members develop a better understanding of:
The fit and proper criteria
The main policy novelties brought by the revised version of the guide
The specific roles and responsibilities of non-executive directors in the governance and functioning of the boards
MODULE 3. BOARD EFFECTIVENESS AND ON-GOING SUPERVISION
Course coordinators:Florian Narring (Head of Section in charge of Governance, Risk management and AML prudential issues, ECB) and Andrew Haralambous (Adviser in ECB Banking Supervision)
This module will address relevant aspects of board governance supervision and board effectiveness in the framework of the Supervisory Review Examination process (SREP). It will cover aspects concerning evaluation processes of board members, including from individual suitability to the assessment of the board as a whole and the interactions between the SREP and suitability assessments. It will particularly focus on the SSM approach to the supervision and governance of risk management and the areas challenged in relation to governance identified through past supervisory cycles. During this module, participants will also discuss and analyse specific empirical examples on the supervisory approach to board effectiveness.
MODULE 4. CULTURE AND BEHAVIOUR IN BOARDS
Course coordinators:Jaap van Manen (Member of the Supervisory Board of Bornet Group Rotterdam and of the Board of Directors of ‘Stichting Maatschappij en Veiligheid’); Aloys Wijngaards (De Nederlandsche Bank/Dutch Central Bank, Head of Department at Expert center for Governance, Behavior, and Culture)
The effectiveness of corporate governance depends not only on a set of rules and their enforcement, but also on the behaviour and culture within an organisation. Behaviour and culture can have a major impact on the soundness, risk management capacity and integrity of an institution. As the decision-making behaviour of the executive team is a tangible activity that non-executives can monitor – but that often find difficult – this module will provide bank board members with a comprehensive understanding of the supervision of board behaviour and culture and its linkage with governance and suitability requirements. In this tone, the module will focus on the development of behavioural and culture supervision and its relevance. It will delve into the main elements and characteristics of the latter and the methodologies and tools for supervision. Through the analysis and discussion of case studies and practical activities, participants will also gain relevant insights on the relationship between cognitive and behavioural factors and decision effectiveness, as well as existing tools for non-executives to better monitor and influence executive decision-making behaviour.
Banks’ Non-Executive Directors (current and prospective)
Board secretaries and secretariat officers
Members of board committees
Regulatory and government affairs managers
Board Advisory consultants
The BBA program puts a high priority on participant diversity, also in geographic terms. Our intention is for participants to interact and discuss with peers to get a valuable learning, sharing and networking experience thanks to an outstanding international faculty of regulators, supervisors, and academics together with bank and finance professionals.
HOW TO APPLY
You will need to complete an online application form.
Upon creation of an account at the Robert Schuman Centre Services Portal, your credentials (username and password) will allow you to fill in your application. The application includes biographical information, information related to your professional background, and contact information.
Eligibility and Requirements include:
Attendees are expected to participate actively in all the program.
Applicants should hold some experience as regards bank business and strategic bank decisions
Applicants should be already sitting in Boards as independent members (current and prospective)
Applicants should ideally sit in Risk Committees
The course will be offered in English.
Applying early increases your chance of being accepted, seats are limited to ensure the interactivity and high quality of the training.
Florence airport is located 8 km from the city centre, approximately 30 minutes by taxi or bus. Taxis can be found outside the arrivals terminal; no reservation is needed. A taxi ride from the airport costs about €20 and takes approximately 25/30 minutes.
A tramway (line T2) connects the airport to the city centre. Trains leave from the airport terminal and take 20 minutes to the main railway station. One-way tickets can be bought from vending machines for €1.50.
Bus tickets are sold outside the railway station, at Autolinee Toscane ticket kiosks and vending machines, tobacconists (tabacchi), newspaper kiosks (edicole), and most cafes (bar). They must be bought before boarding and stamped using the machine on the bus. A ticket costs €1.50 and it is valid for 90 minutes. Bus tickets can be purchased also on board (€ 2.50), but the driver is not obliged to give change.
From the A1 Milano-Napoli (Autostrada del Sole), take the Firenze Sud exit and follow directions to the city centre/Stadio. Follow the directions to the stadium (Stadio), then for Fiesole. San Domenico is on the main road to Fiesole.
The EUI has several free parking areas available all over the Campus.
2.250€ – New participants
1.950€ – Participants of the 2021 online edition
Please note that the payment must be settled two weeks before the start of the course.
The fee includes tuition, access to all course materials and pedagogic activities, coffee and lunch breaks and one networking dinner. It does not include travel and accommodation expenses or other local transportation costs (taxis, private cars).