EBA revises bank governance guidelines for simpler, more proportionate compliance

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EBA revises bank governance guidelines

Highlights

EBA updated Guidelines on internal governance to align with Directive (EU) 2024/1619 (CRD VI), clarifying management body responsibilities and governance for third-country branches.
CRD VI introduces explicit mapping of duties for management body members and key function holders, based on public consultation and outreach feedback.
Final Guidelines lower compliance burdens by reducing detail on duty mapping, simplifying conflict of interest rules, and increasing proportionality for third-country branches and diversity monitoring.

Updated governance framework under CRD VI

As reported by the European Banking Authority, the revised Guidelines on internal governance align the supervisory framework with Directive (EU) 2024/1619, or CRD VI, which amends Directive 2013/36/EU.

The changes clarify expectations for internal governance arrangements, including the responsibilities of the management body, organisational structures, conflict of interest management and key elements of internal control frameworks. They also address cases involving the combination of chair and executive functions, alongside a dedicated governance framework for third-country branches.

CRD VI strengthens some governance requirements, including the introduction of a mapping of duties and responsibilities for members of the management body and key function holders. The EBA says the final text also reflects stakeholder feedback gathered through a public consultation and targeted outreach activities.

Lower compliance burden for EU banks

The final Guidelines reduce the level of detail required for mapping duties and individual statements, introduce greater proportionality for provisions applying to third-country branches, and simplify rules on conflicts of interest.

They also lower the granularity of requirements tied to monitoring diversity and inclusion. The EBA says the revision is designed to keep governance standards strong while cutting unnecessary operational and compliance burdens for institutions across the EU banking sector.

Our earlier report on the launch of Menara Asia’s Menarabena platform explained how Malaysia’s construction sector is using digital tools to streamline procurement while keeping certification and compliance documentation central to purchasing decisions. The article also outlined the role of CIDB-related certification processes and the push to improve supply-chain efficiency without weakening existing regulatory approval requirements.

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