Bloomberg Business is reporting on the growing trend of bank boards being held accountable to their local supervisors for staff conduct and risk culture. The article, penned by Ben Moshinksy and Jennifer Ryan, points to this growing trend on the back of BOE's new Senior Persons Rules.
Andrew Bailey, the CEO of the PRA (the bank regulatory group within the BOE) is quoted rather tellingly as saying that it is "rare to find a problem in the capital or funding business model of a firm that cannot be traced back to a failure of governance" He added that "An effective board is at the heart of good governance to which the PRA attaches particular importance". All of this is of course linked to the Senior Persons Regime and in particular bearing responsibility for risk appetite, Bailey said. Is all of this regulatory change moving us towards a better system or is it placing an unfair burden on bank directors who will find oversight of staff culture an impossible standard to achieve? You can view this article at http://www.bloomberg.com/news/articles/2015-05-21/boe-says-bank-boards-must-bear-responsibility-for-conduct.
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