Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/335000 
Year of Publication: 
2025
Series/Report no.: 
ECB Working Paper No. 3115
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
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.
Subjects: 
management body appointees
banking supervision
ancillary measures
JEL: 
G21
G28
G30
M14
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-7430-1
Document Type: 
Working Paper

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