IoD welcomes proposed reforms of bank boards

The Regulator’s proposals include a call for a minimum of five directors on the boards of banks and insurers operating in Ireland. The reforms also seek to limit the number of directorships that directors of financial institutions can hold, suggesting that in future no one should be a director of more than three firms in the financial sector.

“Today’s publication is a positive step in the reform of the finance sector and we look forward to taking part in the consultation process,” said Maura Quinn (pictured), Chief Executive of the Institute of Directors in Ireland.

According to the IoD, the Regulator’s proposals are in keeping with the Combined Code on Corporate Governance and will also prove central to improving corporate governance standards in the country’s financial and insurance institutions. They will also ensure that there is proper and robust reporting and supervision in place across the financial sector, the IoD added.

The institute pointed to a number of the Regulator’s proposals - the recommendation that the role of the chief executive and chairman be separated and the presence of non-executive directors on each board to provide an independent and objective perspective - as representing a crucial element of good corporate governance.

“What we now need to ensure is that those who sit on all boards are appropriately selected, fully qualified and trained for their position and the responsibilities that come with it,” Quinn said.

“This is a necessary step to improve and strengthen corporate governance frameworks throughout Ireland,” she added.

^{Photo - Jason Clarke Photography}