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The new Italian Banking Regulation concerning banks' organization and corporate governance

The new Italian Banking Regulation concerning banks' organization and corporate governance Purpose – The purpose of this paper is to describe the Bank of Italy's new comprehensive regulatory framework containing guidelines on the organization and corporate governance of banks. Design/methodology/approach – The paper describes the structure of the regulatory framework and the content of the rules, including rules on a bank's choice of board model, a bank's corporate governance project representing bylaws and internal organization, tasks and powers of governing bodies, composition of governing bodies, compensation and incentive mechanisms, and information flows. Findings – The paper reveals that the new rules are in line with recent prudential measures that assign a central role to corporate organization and require banks to establish appropriate corporate governance arrangements and efficient management and control mechanisms aimed to support the risks to which they are exposed. The new regulatory framework also pivots on the principles set forth by Basel Committee's guidance on corporate governance for banking organizations. Originality/value – The paper provides a useful introduction to new Italian organization and corporate governance guidelines for banks by an experienced banking and securities lawyer. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Investment Compliance Emerald Publishing

The new Italian Banking Regulation concerning banks' organization and corporate governance

Journal of Investment Compliance , Volume 9 (2): 5 – Jun 13, 2008

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Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
1528-5812
DOI
10.1108/15285810810886199
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to describe the Bank of Italy's new comprehensive regulatory framework containing guidelines on the organization and corporate governance of banks. Design/methodology/approach – The paper describes the structure of the regulatory framework and the content of the rules, including rules on a bank's choice of board model, a bank's corporate governance project representing bylaws and internal organization, tasks and powers of governing bodies, composition of governing bodies, compensation and incentive mechanisms, and information flows. Findings – The paper reveals that the new rules are in line with recent prudential measures that assign a central role to corporate organization and require banks to establish appropriate corporate governance arrangements and efficient management and control mechanisms aimed to support the risks to which they are exposed. The new regulatory framework also pivots on the principles set forth by Basel Committee's guidance on corporate governance for banking organizations. Originality/value – The paper provides a useful introduction to new Italian organization and corporate governance guidelines for banks by an experienced banking and securities lawyer.

Journal

Journal of Investment ComplianceEmerald Publishing

Published: Jun 13, 2008

Keywords: Corporate governance; Banking; Regulation; Italy

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