19.1 The board is responsible for oversight of each of its committees.

Subject to paragraph 19.2 below, the board shall establish, at a minimum, both an audit committee and a risk committee. Where the board comprises only 5 members, the full board, including the Chairman and the CEO, may act as the audit committee and/or the risk committee. In such cases Section 22.3 and Section 23.3 will continue to apply. Minutes of these meetings shall reflect that the board was sitting as the audit committee or risk committee.

19.2 Where a credit institution is part of a wider group which has a group audit committee and a group risk committee, it may rely on those committees provided that the board is satisfied that they are appropriate to the specific circumstances of the credit institution.

19.3 Committees shall have documented terms of reference evidencing all functions delegated to them.

19.4 The non-executive directors and in particular independent non-executive directors shall play a leading role in these committees or where the functions are carried out at group level; they shall play a leading role in satisfying the board that the credit institution's audit and risk functions are adequately carried out.