The European Central Bank (ECB) found
"serious" and "significant deficiencies" in the governance of
Italian lender Popolare di Sondrio during a six-month inspection
and is imposing a series of "supervisory measures" on it, ANSA
sources said on Monday.
The problems that emerged during the inspection regard Sondrio's
credit risk management system, its compliance and audit
functions and "the structure and functioning" of top management,
according to the sources.
The ECB told Sondrio of the measures being imposed on it on
April 29, the sources said.
The Italian bank was told to "strengthen the structure and
functioning of the management", including the CEO, via the
"assessment" of an external advisor who will give
recommendations on how to "avoid the concentration of
responsibilities and power in the hands of a few executives" and
"ensure adequate separation" and "clear responsibilities between
key management functions".
The measures will also seek to "improve the oversight of
decision-making processes".
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