Central Bank of Ireland Speech - Macroeconomics and Banking in Ireland: Duties of bank directors with regard to governance and internal controls; culture and behaviour; and diversity and inclusion
In a speech published today, 29 November 2018, the Governor of the Central Bank of Ireland (CBI), Philip Lane, has highlighted the expectations of the CBI in relation to the duties of bank directors with regard to governance and internal controls; culture and behaviour; and diversity and inclusion.
The Governor emphasised that bank directors are responsible for ensuring that the banks that they lead are well governed and develop organisational cultures that deliver for consumers and the wider economy.
The Governor was addressing the Certified Bank Director Annual Conference, Institute of Bankers.
The Governor highlighted a number of common themes that have emerged from the CBI's governance and internal control inspections across Irish licensed credit institutions since 2015, which it notes are a cause for concern. In addition, a number of banks did not meet the obligations of the CBI's Corporate Governance Requirements for Credit Institutions 2015 and the address highlights the areas of non-compliance. Advice on how directors can promote a healthy and ethical culture within a bank are also set out. And it is noted that more needs to be done to increase diversity at senior levels in banks and other financial services firms.
In summary, the Governor noted the CBI's view that "all banks have more to do in fostering a consumer-focused culture; improving diversity and inclusion; and meeting the requirements of good corporate governance".
