New stronger supervision framework For banking risk management, money laundering, borrowing and boarding members are implemented. from October 1st. The new rules concern all banks and aim to harmonize the domestic banking system with the guidelines of the European Bank Authority in replacement of today’s almost a decade.

The new framework strengthens the role of internal control committees that all banks and risk management committees should have. It is an upgrade of the rules of internal governance that the Bank of Greece shaped after consultations with the Hellenic Association of Banks in order to further shield the Greek banking system.

In particular, rules are established to prevent and prevent cases of conflict of interest relating to the members of the Board of Directors of Banks and their staff. Among other things, the new stricter rules aim to identify such risks in lending and carrying out other transactions (leasing, real estate, guarantees) to board members and other persons linked to them.

As underlined, in the new framework, banks through the Internal Audit and Risk Management Committees should ensure that decisions relating to loan or other transactions with members of the Board of Directors or with persons linked to them, are taken in objective terms Without unjustified influence, as in all other cases of their daily operation in accordance with prudent management rules. In fact, these members of the Board of Directors who receive credits or the persons linked to them should not participate in the decision -making process for these credits. In particular, additional safety valves are introduced for accounts related to credit lines (overdrafts) to board members. In cases where the credit to a member of the Board of Directors exceeds 200,000 euros, the credit institution is required to provide specific information to the Bank of Greece, which will concern not only the amount of credit but also the amount of outstanding bank credit to the same person.

The new surveillance rules also provide for the establishment of a procedure for reporting infringements by bank staff. These reports will be made either through the functioning of a regulatory compliance, either the internal inspection, or through a specialist reference line (Whistleblowing) obliged to form the credit institution. And this, provided that the protection of personal data, both of the employee who mentions the infringement and the person who is allegedly responsible for the infringement is responsible.

The Risk Management Committee will operate extraordinary and in any case every quarter. The purpose is to identify financial and non -risk. Among other things, these are credit risks, market risks, liquidity, concentration, technology, reputation, legal nature, money laundering, terrorism financing and other criminal activities, social, environmental and strategic.