欧洲央行-SSM的适宜性和适当性工作对银行绩效的重要性——来自10年SSM工作的证据（英）

Working Paper Series The importance of the SSM’s fitness and propriety work for banks’ performance – evidence from 10 years of SSM work Vivian van Breemen, Francesca Faella, Christopher Scheins, Claudia Schwarz Disclaimer: This paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. No 3115 Abstract In this paper, we empirically investigate how suitability concerns detected by the SSM in the fitness and propriety of management body appointees impact the performance of European banks in the period 2014-2023. We provide evidence that management body appointees where the assessment of the supervisory authorities raised concerns, had a negative impact on the bank’s future performance. The negative effect can be attributed to appointees where the supervisory assessment revealed such severe concerns that ancillary measures were imposed. These results outline the importance of the SSM’s work for safeguarding the quality of bank’s corporate governance and suggest that the Supervisors seem to be effective in pointing out those appointees that exhibit severe concerns. In addition, we find that the designation of female appointees by supervised entities increased the bank’s performance sustainably. This result indicates that stimulating diversity, in terms of gender, in the management bodies of banks positively contributed to bank performance. Keywords: management body appointees, banking supervision, ancillary measures. JEL classifications: G21, G28, G30, M14. ECB Working Paper Series No 31151Non-technical summary Strong and effective governance of banks is pivotal for appropriate risk management practices which ensure the soundness of banks and safeguard global financial stability. Good bank boards also exhibit better performance in terms of their profitability, which is commonly measured using the return on assets (ROA). Supervisors and regulators have introduced rules and regulation to ensure that banks’ management bodies are managed by good and suitable members, which is key to foster a healthy governance culture in banks. While banks are empowered to select their own management bodies, the ECB together with national competent authorities (NCAs) (the SSM henceforth) are responsible for assessing the fitness and propriety of banks’ management bodies and approving the appointment. The SSM may request the entity or appointee to take certain remediation actions in case it has concerns regarding the appointment. In case of very severe concerns, the SSM may also reject an appointment. Therefore, Supervisors are the gatekeepers for the entrance to management boards of their supervised entities. This raises the question whether these supervisory actions are effective and positively contributing to ensuring a safe and sound banking sector. To investigate this, we analyse 15,537 management body appointees of European banks that have