Greece’s bank bailout fund has picked consulting firm Spencer Stuart to undertake a review of the boards of the country’s four big banks, part of a drive to crack down on how members are chosen, it said on Thursday.
The evaluation, one of the commitments Greece made in order to receive its third international bailout, aims to boost board-level expertise and improve corporate governance.
The Hellenic Financial Stability Fund (HFSF), backed by the country’s official lenders, said the review will be carried out in line with international prudential practices, applying criteria that go beyond minimum supervisory requirements.
“The HFSF will evaluate the size, operation, organization, structure and the allocation of powers and responsibilities within the boards and will propose improvements and amendments to each institution’s current corporate governance,” it said.
The HFSF currently owns stakes in National Bank, Piraeus Bank, Eurobank and Alpha Bank, after taking part in their recapitalizations.
It will also be assisted on a technical basis by the European Bank for Reconstruction and Development.
Spencer Stuart will compile a detailed evaluation report and recommend actions to improve the boards and the operation of banks’ committees, the HFSF said.