Fitness and propriety are also displayed in the exercise of independent and objective judgment. The “state” of independence is defined by parameters on term limits, a cap on the number of concurrent independent directorships and the challenge of a seemingly limited number of qualified independent directors. Systems of checks and balances should likewise be deeply embedded across all levels in the company.
All the banks need to take decisive steps to tackle the problem of NPLs: the solutions should be assessed individually. The foundations have now been laid for solving the particularly serious problems of some banks, thanks to the instruments developed and the measures adopted by the authorities.