The Norwegian Financial Supervisory Authority (Finanstilsynet) has formally criticized SpareBank 1 Sør-Norge for removing its chief risk officer from the group's executive board.
The regulator argues that this organizational change undermines the bank's governance framework and weakens the necessary oversight of risk management at the highest level.
According to E24, the supervisory authority contends that the risk director should have remained a member of the group's top management team.
The criticism highlights a growing regulatory focus on the independence and seniority of risk functions within Norwegian financial institutions, particularly following recent sector-wide scrutiny of internal controls.
This development adds to the pressure on SpareBank 1 Sør-Norge to demonstrate robust governance practices.
The regulator's stance suggests that the bank may need to reverse the decision or provide a compelling justification for why the risk function can operate effectively outside the executive board.