Appropriate organisation of the business
The requirement of sound and appropriate structures for the organisation of the business to ensure effective and prudent management of the institution is described in general terms in Article 21 of the Banking Law. This is an essential legal requirement which is an inherent part of the legal status of institutions. It must be complied with in any case; only its scope and intensity vary according to the nature, scale and complexity of the risks inherent to the institution’s business model and operations (application of the principle of proportionality). The governance structure should at all times be adapted to the development of the business. This requirement is illustrated in the Banking Law by a non-exhaustive, thematic list of its various aspects, which will be covered in more detail below.