How are bank administrators regulated

New duties for bank managers and supervisory board members

For some time now, bank managers have also had to observe two regulations that affect them personally: §§ 25 c and d KWG. Both regulations specify the requirements for the work of the executive and supervisory boards.

Most banks and savings banks perceive supervisory requirements, regulation and compliance as a burden. They ensure the security and thus the existence of our modern banking system and, if used correctly, also enable opportunities in customer business. In the bank blog you will find current studies on trends and developments in this area.
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The more recent legal modifications and supervisory regulations such as the minimum requirements for risk management (MaRisk) of the Federal Financial Supervisory Authority (BaFin) initially brought only a few changes in content for the managers of banks. It is now to be expected, however, that the guidelines of § 25 d for the supervisory boards will also have consequences for the cooperation with the executive boards.

As part of the efforts to make banking business safer, the legislature has considered it necessary and appropriate to include criminal liability regulations for managers in the KWG under the so-called Separate Banks Act.

Responsibility of the bank manager

Anyone who neglects risk management makes himself personally liable to prosecution. The legal regulation now contains specific requirements for the organization and the cycle of internal reporting. In addition to individual responsibility, a management committee expressly has overall responsibility; A board member not only has to control his department, but is also responsible for all other important issues of his bank.

Against this background, EY has carried out several studies on the practice of managerial responsibility in recent months. Around 240 managers from around 60 credit institutions were surveyed. The cluster of institutes was made up of the largest institutions in terms of total assets as well as private and foreign banks.

The main focus is on the one hand the assessment of the measures and regulations already in place in the institutes and on the other hand the consequences to be drawn in view of the tightening of the law.

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