- 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.