The evolving knowledge, skills and experience of “suitable” bank boards in the EU regulatory framework

This article examines the recent evolution of EU legislation on the “suitability” of bank boards, particularly in light of the amendments introduced by Directive (EU) 2024/1619 (CRD6). After outlining the rationale for fit and proper assessments in the banking sector, the paper illustrates the fragmented legal framework that has arisen across Member States. It explores how CRD6 seeks to harmonize rules by revising Article 91 of the Directive 2013/36/EU, introducing Article 91b on key function holders, and strengthening the requirements and procedural aspects for assessing individual and collective suitability. A key development is the explicit inclusion of ESG and ICT risks as part of the collective suitability criterion. While these competencies are assigned to the management body as a whole, the need for board members to maintain at least a baseline understanding of sustainability and digital risks is highlighted. Finally, the importance of training programs is emphasized, as they enable bank boards to maintain broad and up-to-date knowledge, skills and expertise in constantly evolving fields.