In particular, it sharpens the focus on directors’ duties to ensure that their bank has the necessary systems in place to identify, monitor and manage adequately the bank’s various business risks, and to ensure that those systems are being properly applied at all times.
The disclosure requirements are also likely to increase the accountability of bank directors and, indirectly, the accountability of various levels of management within the banks. As a result of the disclosure arrangements, we would expect to see directors taking greater care than might otherwise have been the case to ensure that they are adequately discharging their BIS Review /1997  -5-  obligations.