THE EU will soon begin sharing information on how bankers fare in fitness and probity tests in member states, making it harder for errant bankers to evade regulatory scrutiny by crossing national borders.
The European Banking Authority’s regulation director Isabel Vaillant has said that work will begin on the new fitness and probity database next year, ending the current system of ad hoc sharing between national authorities.
The database will contain details of national supervisors’ assessments of newly appointed bank directors, senior management, divisional heads and some other key functions like internal control.
The EBA lacks the power to compel countries to set the same standards for bankers across the EU but has brought in new guidelines on how countries should evaluate bankers’ suitability and will “name and shame” countries that don’t comply, Vaillant said.
The EBA was given the power to collect information under the latest version of new European banking regulations dubbed CRD IV.
City A.M. Reporter