Belgium Introduces New Banking Oath for Industry Professionals

A Step Forward in Ethics and Transparency

The Belgian banking sector has witnessed significant activity this year, but one development stands out as a crucial milestone: the introduction of a new banking oath that ensures industry professionals uphold the highest standards of integrity. This oath requires directors, managers, and employees to prioritize the best interests of their clients and treat them fairly.

Enhancing Ethics and Suitability Requirements

The oath complements existing suitability requirements under the Banking Act, which aims to integrate the EU’s banking union into Belgian law. The Banking Act has transposed various EU directives and regulations, including:

• CRD IV: Strengthening capital requirements and risk management
• Financial Conglomerates Directive: Regulating conglomerate activities
• Bank Recovery and Resolution Directive (BRRD): Enhancing resolution regimes for failing banks
• MiFID II Requirements: Improving investor protection

Key Role of the National Bank of Belgium (NBB)

The NBB has played a pivotal role in implementing these changes. The bank has issued:

• Communications and Circulars: On topics such as diversity, gender pay gaps, and regulatory inspections
• On-site Inspections: To ensure compliance with prudential supervisory requirements

A More Inclusive Financial Environment

Belgium’s efforts to foster a more inclusive financial environment are reflected in the increasing number of foreign credit institutions establishing representative offices within its borders.

Shaping the Regulatory Landscape

The introduction of the new banking oath and ongoing efforts by the NBB demonstrate a concerted push towards enhancing transparency and accountability within the Belgian banking sector. As the industry continues to evolve, these developments will undoubtedly shape the regulatory landscape for years to come.