11.2.5 Concluding remarks

The replacement of the bank’s senior management is a relevant characteristic. In my view, it is good that the senior management of a beneficiary bank is replaced. It ensures that the bank’s management has incentives to take measures to prevent the need for State aid. However, I recognise that there are situations in which the bank’s management cannot be blamed for the bank’s demise. I therefore welcome the fact that point 37 of the 2013 Banking Communication provides for exceptions to the general rule that the senior management should be replaced.

Although I applaud the 2013 Banking Communication, I am less enthusiastic about the decisional practice on this point. The present section has shown that there are many decisions that omit to mention whether the bank’s senior management has been replaced. The omission to mention the relevant characteristic would suggest that the Commission did not take into account the relevant characteristic. This would amount to an inconsistency.

How to remedy this inconsistency? Requiring a replacement of the senior management in all bank State aid cases is not the appropriate solution. As set out above, I am of the opinion that there are situations in which a replacement of the senior management is not desirable. In my view, the correct solution would be for the Commission to clearly mention in every case whether the senior management has been replaced.