Moody’s Says Risk Governance at Many Big Banks Still Lacking
July 24th, 2009
Research Recap submits:
Moody’s thinks corporate risk governance is still lacking at many large banks.
In a Special Comment, Moody’s said there is significant room for improvement in the risk governance of many large banks and added that it will be looking closely at the issue in determining bank credit ratings. Moody’s singled out JP Morgan Chase (JPM), Macquarie and Santander (STD) as exceptions, with all three banks having a powerful Chief Risk Officer reporting to the CEO and the Board. By contrast the CROs at Barclays (BCS), Goldman Sachs (GS) and HSBC (HBC) report to the CFO. Santander also leads in the frequency of risk committee meetings at 120, followed by BBVA at 45.
