The European Commission has published a feedback statement outlining the summary of responses received to its Green Paper on corporate governance in financial institutions. Broadly, respondents agreed with the analysis of the weaknesses in corporate governance in financial institutions and support the goal of promoting effective corporate governance. They also support a more effective provision of the implementation by financial institutions of principles on good corporate governance.
Financial institutions recognise that effective governance makes a meaningful difference in corporate performance and are currently reviewing their practices. Clear definition and division of responsibilities is critical. A number of respondents required more clarity as regards respective duties of different bodies within the financial institution.