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Banks Should Seek ECB Nod Before Naming Executives, Enria Says

  • Some countries allow banks to seek regulator approval later
  • Enria says banks are fixing governance problems slowly
Views Of The Financial District As Goldman CEO Blankfein Tweets About Spending 'A Lot More Time' In Frankfurt
Photographer: Alex Kraus/Bloomberg

The European Central Bank said lenders should ask for feedback before naming senior executives, as the region’s top regulator takes a tougher tack on how banks are run.

The ECB will recommend that banks provide suitability assessments before making appointments, even if rules in their respective countries allow them to do so after the fact, said Andrea Enria, who leads the central bank’s supervisory board. The move is intended to avoid embarrassment for the ECB and banks alike in case executives are later found to be unsuitable for their roles.