Banking Act (Cap. 371), article 17B

17B. (1) Every credit instituti on shall put in place robust governance arrangements which include a clear organisational structure with well defined, transparent and consistent lines o f responsibility, effec tive processes to identify, manage, monito r and report the risks it is or might be exposed to, adequate interna l control mechanisms including sound a dministrative and accounting procedures, network and information systems that are establishe d and managed in accordance with the DORA Regulation, and remuneratio n policies and practices that are consistent with and promote sou nd and effective risk management: Provided that such remuneration policies and practices shall be gender neutral. (2) The arrangements, processes and mechanisms referred to in sub-article (1), shall be comprehensive and proportionate to th e nature, scale and complexity of the risks inherent in the busin ess model and the credit institution’s activities. Credit instituti ons shall take into account the technical cr iteria laid down in a Banking Rule. (3) Every credit institution shall also ensure that its internal 48 CAP. 371.] BANKING control mechanisms and administrative and accounting procedures permit the checking of compliance with the rules adopted in accordance with the provisions of this Act and any regulations made and, or Banking Rules and, or Conduct of Business Rules issued thereunder, with any binding legal instruments issued under the CRD, and with the CRR at all times. (4) Deleted by Act XXVI.2019. 8. (5) A credit institution shall cooperate closely with the Resolution Committee established under the Malta Financial Services Authority Act , and with any relevant European Resolution Authorities or Third-Country Resolution Authorities and shall p rovide them with all information necessary for the preparation and drafting of a viable resolution plan setting out options for th e orderly resolution of the credit institution in the case of fai lure, in accordance with the princip le of proportionality. Credit institutions’ internal capital adequacy assessment process. Added by: XX. 2007.101. Amended by: II. 2011.19.