In a speech delivered last month, Frank Elderson, Vice-Chair of the Supervisory Board of the European Central Bank (ECB), argues that a bank's culture is the most important driver of employee behavior, risk, and financial performance. As such, culture is of critical supervisory focus for the ECB, Elderson explains.
"A healthy culture can spur innovation, nurture customer relationships and foster employee loyalty," Elderson says. “But an imprudent culture can propel institutions towards crises that reverberate through financial history... Culture shapes behaviour, and behaviour, in turn, shapes the destiny of financial institutions.”
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