1. Trust in the reliability of the financial system is crucial for its proper functioning and is a prerequisite if it is to contribute to the economy as a whole. Effective internal governance arrangements are fundamental if credit institutions and investment firms subject to Directive 2013/36/EU [Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.] (CRD) (both referred to as ‘institutions’), payment institutions and electronic money institutions (both referred to as ‘payment institutions’) and the financial system they form part of are to operate well.
2. Over recent years, there has been an increasing tendency by institutions and payment institutions to outsource activities also in order to reduce costs and improve flexibility and efficiency.
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