EU to consider new corporate governance measures for banks

A senior figure at the European Commission has said new measures requiring EU banks to appoint independent risk committees are currently being discussed.

David Wright, an official whose role at the commission involves overseeing financial regulation, told Dow Jones Newswires that the proposals should be released for public consultation in May.

He said improving the corporate governance of banks in the EU will strengthen the region's imminent financial reforms.

Speaking about the consultation paper, Mr Wright said: "It should look at whether we need mandatory, independent risk committees."

He suggested many of the financial organisations that encountered problems during the economic crisis were controlled by a dominant chief executive with little risk oversight.

Negotiations are ongoing over one of the most controversial aspects of the EU's financial reforms, the Alternative Investment Fund Managers (AIFM) directive, which is due to become law in July.

This piece of legislation aims to regulate hedge funds and private equity firms, although a key meeting to discuss the directive was postponed due to the volcanic ash incident last week.