Credit institutions

Evaluation of the Supervisory Board and Executive Board for Credit institutions

Requirements of the German Banking Act (KWG)

Pursuant to § 25d par. 11, nos. 3 and 4 KWG, the administrative or supervisory body, with the assistance of the nomination committee, shall regularly, at least once a year,

• assess the structure, size, composition and performance of the administrative or supervisory body, and

• the knowledge, skills and experience of the members of the administrative or supervisory body.

Furthermore, the regulatory requirements of the EBA Guidelines, the Remuneration Ordinance for Institutions or the Minimum Requirements for Risk Management should be taken into account.

The evaluation can and should achieve more than a purely regulatory-driven compulsory exercise. It helps to

• create a uniform information basis for a well-founded discussion in the supervisory board.

• identify and describe deficits and obstacles to effective board work.

• formulate the need for improvement and action.

• establish a systematic process for the continuous development of supervisory board work.

ECBE has extensive experience in accompanying the annual evaluation in credit institutions

ECBE offers a tailor-made solution especially for banks and financial service providers, which not only analyses the relevant regulatory requirements, but rather highlights the procedures known as best practice in the board's fields of activity. The company-specific context and the resulting individual requirements are fully taken into account.