Ministry of Finance prepares Supervisory Board for CEC

The Ministry of Finance, sole shareholder of the CEC (Romanian Savings Bank), intends to separate the executive management of the bank from its management-supervision structure and set up a Supervisory Board, adopting a corporate model widely used by leading credit issuers, official sources say. The board is supposed to manage and co-ordinate the activity of the executive board, headed by the bank's chief executive. Currently, Eugen Radulescu holds both the position of chief executive and chairman of the Board of Directors. By restructuring the bank's management, the Ministry of Finance intends to boost CEC's results, amid increasing competition on the market. Concerned by the CEC's dwindling market share, the Ministry of Finance is even considering the possibility of managing the bank's operations on the basis of a management plan (a performance contract), by which the executive management of the CEC would be expected to attain certain targets that would be predominantly based on market share.