Banking Regulation in Belgium: Governance, Registration, and Oversight

Key Points

• The management body is responsible for ensuring the orderly functioning of a bank.
• Members of the management body must receive ongoing training to ensure they are fit and proper.

Senior Management

• Senior managers should have knowledge, experience, and skills appropriate to their function and behave professionally.

Remuneration Requirements

• Remuneration policies must be sound and prudent risk management.
• They must be aligned with the business strategy and long-term interests of the bank.
• Banks must identify staff whose professional activities have a material impact on the bank’s risk profile and subject them to specific requirements on remuneration.

Annex II: Remuneration Policies

The Banking Law provides detailed “dos” and “don’ts” for remuneration policies, emphasizing the balance between fixed and variable components of remuneration. The variable component is capped at 50% of the fixed part or EUR50,000 (whichever is lower), and can only be paid if the bank’s financial condition allows it.

COVID-19 Crisis

During the pandemic, the NBB issued communications advising banks to set the variable portion of remuneration at a conservative level.