Abstract
In 2013, De Nederlandsche Bank will focus more clearly on board evaluations in its financial supervision. This chapter summarizes the pros and cons of board evaluations for financial supervision. In addition, it is examined what constitutes ‘good supervision’ when it comes to board evaluations and what can reasonably be expected of DNB in this regard. DNB will publish a set of Best Practices regarding the process of board evaluations in order to give financial institutions some guidance on how to set up the process.
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Notes
- 1.
The term ‘board’ refers to one-tier and two-tier systems.
- 2.
For example, the former Minister of Finance and the President of DNB were called forward by a parliamentary committee to explain their roles in the credit crisis in the Netherlands.
- 3.
In the literature, the concepts of board evaluations, self-evaluations and self-assessments are used interchangeably.
- 4.
Cf. the Order in Council by the Ministry of Social Affairs and Employment of December 18, 2006 on the Pension Law and Law on Mandatory Pension Arrangements, Article 11.
- 5.
Financial Reporting Council, 2010, p. 10.
- 6.
Principles For Enhancing Corporate Governance, Basel Committee on Banking Supervision, 2010, p. 11.
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Groothuis, M., Wijngaards, A., Khan, A. (2013). Board Evaluations. In: Kellermann, A., de Haan, J., de Vries, F. (eds) Financial Supervision in the 21st Century. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36733-5_8
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