When we look at the recent bank failures, in most cases we see a failure to manage risks such as interest rate risk, liquidity risk and counterparty credit risk. In the end, this comes back to bad governance, says Supervisory Board Chair Andrea Enria.
Enria: Banks must take ownership for identifying and managing risks. They need robust governance and a sound risk culture to ensure that the pursuit of growth and profitability never comes before prudence.
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Enria: When poor governance or an unsustainable business model jeopardises the viability of a bank, supervisors need to be bold and drive change within a well-defined timeframe.
