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Governance of Financial Institutions edited by Busch, Danny; Ferrarini, Guido; van Solinge, Gerard (31st January 2019)

Part IV Conduct and Culture, 17 Public Supervision of Behaviour and Culture at Financial Institutions

Wijnand Nuijts

From: Governance of Financial Institutions

Edited By: Danny Busch, Guido Ferrarini, Gerard van Solinge

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved.date: 26 August 2019

Subject(s):
Regulation of banks — Investment business

This chapter studies the relationship between organizational culture and firm performance. Despite of its obvious relevance for firm performance, not many financial supervisors have included behavioural perspectives into their supervisory methodologies in a structured manner. Financial supervision needs to combine structural perspectives with insights into the behavioural and cultural drivers of firm performance in order to become more effective in fostering firm and financial stability. De Nederlandsche Bank’s (DNB) supervision of behaviour and culture aims at identifying behavioural patterns that may jeopardize the financial position, risk profile, and integrity of financial firms. DNB has developed multiple frameworks to capture several important drivers of firm performance. In their core, most frameworks are built around a set of common elements. These elements pertain to leadership, decision making, reflective learning, and the impact of contextual factors on behaviour.

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