An enhanced annual performance measurement process for Boards and individual directors will be introduced shortly. In addition, any bank with assets larger than a certain pre-defined level will be required to form an international advisory panel to aid good corporate governance practices within the bank. Furthermore, the CBN will encourage all banks to appoint qualified directors with international experience.
And a highly integrated banking system is positive news for the real economy. Thus, a banking union is an excellent project and it is actively supported by the Bundesbank. Of course, we need to get it right. To be successful, any banking union needs strong institutions. This is why we need a thorough asset quality review as soon as possible with credible national backstops.