The Bank Supervision Department has drawn up the principles regarding the existence of a main risk management function in banks, and all banks have appointed a chief risks officer. The principles of a proper compensation policy have also been formulated, and changes in this sphere are becoming evident world wide.
[Slide 16 – Contribution of banks to systemic risk] According to this important report by ASC additional policy measures are needed to “reduce excessive private credit creation by banks and mitigate its risks, re-balance the EU’s financial structure away from banks and mitigate the risks from banks’ “non-bank” activities”. Among the additional policy measures the report also recommends the implementation of structural reforms.