Portugal: Bank of Portugal governor rebuffs suggestions not ‘fit and proper’

Page created: Friday, 24 March 2017 8:50 GMT

Bank of Portugal  Bank of Portugal governor  Carlos Costa


Lisbon, Mar. 23 (Lusa) – The governor of the Bank of Portugal, Carlos Costa, said in parliament on Wednesday that he believes he continues to meet the necessary requirements for the role, in response to a Communist deputy’s remark that central bank chiefs must be fit and proper persons for their job, just like directors of commercial banks.


“The fit and proper test also applies to the governor,” said the deputy, Miguel Tiago, addressing the governor at the start of the hearing of parliament’s committee on the budget, finance and administrative modernisation at which Costa was to be questioned above all on the collapse of Banco Espírito Santo (BES) and his handling of it.


“It is up to those who make the appointment to assess whether someone is fit and proper, in other words, it is in the framework of central banks,” Costa said. “If there are doubts, appeal can be made to the European Court of Justice.”


Tiago then queried: “Do you still fulfil the requirements?”


To which the governor replied: “Of course I do. If you have anything to say on the matter, please do.”


The Bank of Portugal wound up BES in August 2014 after it announced billions of euros in first-half losses. It has been accused of dragging its feet, after a series of indications that all was not well with the Espírito Santo group.