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Text applicable on 1 Jan 2015Consolidated version of 1 Jan 2015Earlier versionUpcoming changefrom 13 Jan 2018Unofficial text · authentic on EUR-Lex (opens in a new tab)

CRD Article 74 — as applicable on 1 Jan 2015 (version of 1 Jan 2015)

Upcoming changeThis provision is amended or removed from 29 Dec 2020.View that version

Article 74

Internal governance and recovery and resolution plans

On this provision: 6 EBA Q&As

Amendment details· last amended 1 Jan 2015
Versions of this provision:17 Jul 20131 Jan 201529 Dec 202030 Dec 202417 Jan 202511 Jan 2026

Last amended 1 Jan 2015 by Directive 2014/59/EU of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and.

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1.

Institutions shall have robust governance arrangements, which include a clear organisational structure with well-defined, transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks they are or might be exposed to, adequate internal control mechanisms, including sound administration and accounting procedures, and remuneration policies and practices that are consistent with and promote sound and effective risk management.

2.

The arrangements, processes and mechanisms referred to in paragraph 1 shall be comprehensive and proportionate to the nature, scale and complexity of the risks inherent in the business model and the institution's activities. The technical criteria established in Articles 76 to 95 shall be taken into account.

3.

EBA shall issue guidelines on the arrangements, processes and mechanisms referred to in paragraph 1, in accordance with paragraph 2.