European Banking Authority (EBA) is planning create new fitness and probity database of bankers in member states, ending the current system of ad hoc sharing between national authorities.
The move is part of a wider effort by the EBA to standardise the way countries across the EU 28 decide which bankers are fit and proper for the job.
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To make it harder for errant bankers to evade regulatory scrutiny by crossing national borders, the European Union will soon begin sharing information on how bankers fare in fitness and probity tests in member states.
The database will contain details of national supervisors’ assessments of newly appointed bank directors, senior management and divisional heads.
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, the EBA’s regulation director Isabel Vaillant said.
The EBA was given the power to collect information under the latest version of new European banking regulations dubbed CRD IV.
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By GlobalData"We will build a database here only for the purposes of this," she said, adding that while the database could not include information obtained from the police it would include other information collected by supervisors, including whether candidates had received the regulatory nod for a role.
All the authorities will have to consult the database when they are assessing candidates who present themselves for new roles that are captured by that country’s fitness and probity regime, a group that usually includes directors, senior managers and heads of major divisions.
National authorities will have to submit information to the centralised system, but a regulator’s refusal to allow a candidate to take a position in one country will not automatically mean a rejection in another, Vaillant said.
