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VoxEU

Insufficient supervisory board competence as a risk factor for banksÌýÌý

The Credit Suisse crisis illustrates how poor governance can lead a large bank into a crisis despite compliance with capital requirements. Recent research on supervisory board competence in banks has provided interesting new insights. Although competence measures have improved for most banks, large gaps remain across banks and also between public-sector and private-sector banks. GSEM Professor Harald Hau co-authors a column on whyÌýbank supervisors should systematically measure, track, and report bank board competence and its alignment with a bank’s business.ÌýÌý

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