New corporate governance code for banks

Monday 23 December 2013 13.15
Central Bank's revised code set to come into effect in 2015
Central Bank's revised code set to come into effect in 2015

The Central Bank has published a revised corporate governance code for banks, which is due to come into effect in January 2015.

The new code sets out minimum statutory requirements on how banks should organise the governance of their institutions.

Under the revised code, banks will be required to appoint a Chief Risk Officer, while their risk and audit committees will be required to have at least three members.

The Central Bank said a risk committee will be made up of a majority of non-executive or independent non-executive directors, one of whom must be the chairman of the committee.

Credit institutions will also be required to ensure that there is at least one shared member between the risk and audit committees.

The code also states that banks will from 2015 be required to introduce a diversity policy for board membership, while it also states that the chairman can hold the role of chairman in other credit institutions and or insurance undertakings within the group - subject to approval from the Central Bank.

Credit institutions will also be required to ensure that there is at least one shared member between the risk and audit committees.

The code also states that banks will from 2015 be required to introduce a diversity policy for board membership.

It also states that the chairman can hold the role of chairman in other credit institutions and or insurance undertakings within the group - subject to approval from the Central Bank.