Banks’ board members and policy makers: A conversation

Organised by

• Robert Schuman Centre for Advanced Studies
• FBF: Florence School of Banking and Finance

Banks have been at the center stage of the intermediary chain since the pandemic outbreak as they were called to provide lending to a frozen economy. Going forward their boards will need to continue steering them to facilitate the recovery and the transformation of the economy towards a more sustainable and more digital advanced modus operandi. In this respect, the Next Generation EU may turn out to be a catalyst for improving the low stagnating profitability of the European banking sector and fostering its restructuring.

Banks’ internal governance and supervisory expectations will be key factors for the European economic transformation. On the one hand, bank boards will have to enhance diversity and expertise in specific new areas such as IT and climate change in addition to enhance their effectiveness. On the other hand, supervisors will be essential in accompanying the new role that banks will play in the economic recovery.

Against this background, the online debate will ask:

• How has banks’ internal governance evolved in recent years and what are the main challenges for the board’s oversight going forward?
• How does the recent evolution in their internal governance allow banks to be better prepared than in 2008 to face the main challenges banks are experiencing?
  • Covid Crisis – Board’s ability to adapt to evolving circumstances – response to the crisis
  • Challenges & acceleration of trends: digitalization, change in customer behaviour, new entrants, profitability, etc.
  • Expertise & diversity enhancement on the Board. Recent trends to broaden the scope of diversity (in terms of gender, expertise, ethnic and racial). Alignment with the strategy and the needs of the Board
• How has banking union benefited from common supervisory practices in the area of governance and how could further harmonisation within the EU be beneficial in this respect? What new supervisory tools may be used going forward to ensure a further enhancement in banks’ board effectiveness?
• How can banks sustain the new European economic recovery? What is the role of banks’ board in this context?
• What role can supervisors play in sustaining the role of banks in the implementation of the Next Generation EU?
• Looking forward, one of the big challenges is climate change. There are increasing demands from stakeholders on ESG matters and, particularly on sustainability. What is the supervisory expectation on climate change? Where should banks and their board focus?
  • Enhancement of the Board’s role to incorporate sustainability in the company’s strategy and business management. Effective oversight on ESG risks and opportunities. Expertise on sustainability issues. Integration of compensation KPIs linked to sustainability.

Links:

• Information and registrations here