Far Less Professional Competence on Supervisory Boards of Public Banks in Germany than at Private Banks
The professional competence of supervisory boards at public banks in Germany is significantly lower than at private banks, according to a study by the ifo Institute in the latest edition of ifo Schnelldienst. “There are numerous studies that show a correlation between supervisory board competence and the economic success of the banks. More competence in the supervisory bodies of public banks could help to better manage future crises,” says Marcel Thum, Director of ifo Dresden.
The authors already published a study on the same topic after the financial crisis in
2008/09. Since then, the supervisory bodies of public banks have caught up
significantly in terms of competence, but still lag behind compared to private banks.
“In the areas of financial market expertise and management experience, the gap
between supervisory boards of public banks and private banks is particularly large,”
says Thum.
The assessment of professional competence is based on the personal educational
background, and experience in management and in the financial markets of the
individual members of the Supervisory Boards between 2008 and 2023. The study
covers a total of 17 banks in Germany, of which nine are private and eight are
organized under public law. They include eight of the ten largest German banks in
terms of total assets.
Publication
Die Zukunft des europäischen Finanzsystems – zwischen Risiken und mangelnder Wettbewerbsfähigkeit?
ifo Institut, München, 2024
ifo Schnelldienst, 2024, 77, Nr. 07, 03-36
