Business · Companies · 56 mins ago
EBA keeps safeguards for banks with executive chairs
The European Banking Authority issued final bank governance guidelines after more than a year of work and public consultation.
The guidelines say a bank’s chair should generally be a non-executive, but executive chairs remain possible with safeguards.
This matters in Spain, where Santander, BBVA and Kutxabank still have executive chairs, while other banks have moved away from the model under supervisory guidance.
Banks with executive chairs must address risks to oversight and checks, including conflicts of interest; a coordinating director is one possible safeguard.
The final text also focuses on former chief executives who become chair of the same bank within two years of leaving their executive role.
The new guidelines replace the rules in force since 2021.
The European Banking Authority has issued final internal governance guidelines that retain safeguards for banks whose chair also has executive duties.
The guidelines say the chair should generally be a non-executive member of the board.
Where an executive chair is permitted, banks should identify and mitigate any negative effects on checks and balances, including conflicts of interest.
The final version restores a recommendation that was removed from a 2025 draft.
Santander, BBVA and Kutxabank have executive chairs and each has a coordinating director.
- Who
- The European Banking Authority issued the guidelines. They apply to banks and other institutions covered by the rules.
- What
- The EBA published final internal governance guidelines, including safeguards for executive chairs.
- When
- The final guidelines were published on November 11, 2026.
- Where
- Europe.
- Why
- The guidelines set governance expectations, including measures to identify and mitigate risks to checks and balances when a chair has executive duties.
European Banking Authority
European Banking Federation
Executive-chair safeguards
European Banking Authority
The final guidelines say that where an executive chair is permitted, institutions should put measures in place to identify and mitigate negative effects on checks and balances.
European Banking Federation
The EBF asked the EBA to restore the recommendation for counterbalances, arguing that removing it raised concerns not based on empirical evidence.
Executive-chair model
European Banking Authority
The guidelines state that, as a general principle, the chair should be a non-executive board member.
European Banking Federation
The EBF said research found that an executive chair does not negatively affect bank governance or performance.
The existing EBA internal governance guidelines came into force.
The EBA held a public consultation on its new guidelines.
The first draft removed the recommendation to establish counterbalances for executive chairs.
The EBA published the final guidelines, restoring the recommendation.
- Guidelines
- Replace those in force since 2021
- General principle
- The chair should be a non-executive board member
- Safeguards
- Identify and mitigate negative effects on checks and balances
- Consultation
- August–November 2025
- Spanish banks named
- Santander, BBVA and Kutxabank
- Board size
- Each has 15 directors, including two executive directors
What people are saying
When an executive chair is permitted, the institution should have measures to identify and mitigate, where appropriate, any negative impact on the institution’s checks and balances, including through the proper management of conflicts of interest.
The removal of this long-accepted recommendation raises unjustified and worrying doubts about its effectiveness in institutions with executive chairs, doubts that are not based on empirical evidence.
Different research and studies have concluded that having an executive chair has no negative impact on either governance or the bank’s results.
Credit institutions must retain the flexibility needed to organize their governing bodies and committees according to their own risk management frameworks, provided these are effective and meet the general requirements.