Internal control arrangement

We regularly review the level and adequacy of internal control exercised by the largest credit institutions and other key supervised entities. Related inspections have a particular focus on the function and role of the board of directors in internal control. The aspect of internal control is included in all inspections.

What does internal control mean?

Internal control comprises economic and other control and is carried out by the board of directors, CEO and other senior management as well as the entire personnel. Internal control is by definition the part of management and operations that seeks to ensure

  • accomplishment of stated goals and objectives
  • economic and effective use of resources
  • adequate management of risks inherent in operations
  • reliability and correctness of financial and other management information
  • compliance with regulations
  • adequate safeguarding of operations, data and assets of supervised entities and customers
  • adequately and appropriately organised manually operated and IT-based systems to support the operations pursued.

The supervised entity’s board of directors is responsible for the establishment and maintenance of adequate and functioning internal controls. A parent company’s board of directors must ascertain compliance with the principles of internal control in all corporations controlled by the company.

See also



3 December 2015

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