National Bank asks NBFIs to set up risk committees

Non-bank financial institutions (IFN), which include leasing and consumer loan companies, with 10 billion euros in overall assets at the end of the first half of the year, have to have risk management committees made up of at least three members of the company’s management team, according to a new regulation published by the NBR, which came into force last week. “The risk management committee will be set up based on a decision by the board of directors or of the supervision board and must include managers of the non-bank financial institution and of the departments whose activity entails dealing with major risks. The members of the risk management committee must have the expertise necessary to fulfil their tasks,” reads the new regulation. At least once every six months, this committee – which will identify and control major risks – will have to submit reports on its activity to the management board. “Non-bank financial institutions need to take steps towards management of the following major risks: credit risk, market risk, operational risk, and reputational risk,” the NBR regulation specifies.