Home Business Bank board of directors demands disciplinary action in case of internal bank problems

Bank board of directors demands disciplinary action in case of internal bank problems

by news dir

[뉴스토마토 신병남 기자] In the future, when a financial accident occurs at a bank, the board of directors can demand disciplinary action against the executives and employees. To this end, the role of the bank’s board of directors was specified and the division of roles among those in charge of internal control was clearly defined.

The Federation of Banks announced on the 24th that the Board of Directors voted on the amendments to the ‘Standard Internal Control Standards for Banking’ and ‘Governance Annual Report’ containing these details on the 22nd.

First, in the event of a problem with internal control within a bank, the board of directors can request the management to submit an ‘internal control improvement plan’ and demand ‘disciplinary action’ against responsible executives and employees. Until just before, it was pointed out that the role of the board of directors was not specific because it was defined as ‘deliberating and deciding on major matters of internal control’.

As the duties related to internal control of the bank representative, the duty to prepare preventive measures to prevent violations of internal control standards, the duty to inspect the internal control system and operation status, and the duty to prepare sanctions standards for violations of the internal control standards were specified. In addition, the division of roles among executives and employees has been clarified by specifying the subject of internal control activities from the existing ‘bank’ to the CEO, compliance officer, reporting officer, and head of the organizational unit.

In addition, the obligation to complete internal control training for compliance officers was introduced. Major activities related to internal control of the bank’s board of directors are required to be disclosed in the corporate governance annual report.

The banking sector suggested to the financial authorities that it would increase the effectiveness of internal control by devising a self-control plan after the decision to cancel heavy disciplinary action related to derivative-linked funds (DLF) by Woori Financial Group Chairman Son Tae-seung last year.

After that, the Korea Federation of Banks gathered issues that banks could voluntarily improve without the need for law revision, and this time it was amended. Eunyeon said, “Internal control is essentially something that financial companies should establish and operate autonomously.

The Federation of Banks located in Eulji-ro, Seoul. Photo/Bank Association

Reporter Shin Byung-nam [email protected]

ⓒ Delicious News Tomato, reprinted without permission – redistribution prohibited

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