Stilpon Nestor, NeAd’s managing director and one of the authors of the report said: “While board organisational design could improve, the key failings of bank boards were not driven by structural governance deficiencies. They were due to the inability of most boards to see the forest for the trees. The solution is not to pile more control responsibility on boards as regulators have been doing over the last decade. In contrast, boards should be given more freedom to stand back from day-to-day pressure so that they can concentrate on the larger franchise issues. As regards the oversight of operational controls, bank regulators should engage more directly with executive management. In a strange twist of fate, the demise of light-touch regulation might actually facilitate bank board liberation.
Access full Report.
Also, see Introduction, in pdf format.
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