Regulatory AlertsRecommendation Z regarding internal governance rules in banks
The Polish Financial Supervision Authority issued Recommendation Z to establish good practices for internal governance in banks, covering management systems, organizational structure, and the roles of supervisory and management boards. The document mandates compliance with proportional principles, requiring banks to implement specific policies on risk appetite, remuneration, and conflict of interest while adhering to the 'comply or explain' rule for cooperative banks. Banks are required to fully implement these recommendations by January 1, 2022, to enhance institutional resilience and financial sector stability.
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