Mizuho Bank Europe Annual Report 2018

14 MIZUHO BANK EUROPE N.V. 2.4 Regulatory Oversight We strive to have a sound understanding of and compliance with the regulatory environment because it pertains to the bank’s organizational structure as well as its risk appetite framework. As with previous years, in 2018 the bank faced an increasingly demanding regulatory landscape. During 2018, the Supervisory Board had special attention on MBE’s implementation of the Markets in Financial Instruments Directive (Mifid II), the General Data Protection Regulation, and the Payment Services Directive II. External threats and events such as the increase in cybercrime forced an even stronger focus on data protection and cybersecurity. Communication with MBE’s home state regulators, the DNB and AFM, has been open and constructive. As Supervisory Board members, we anticipated and carefully monitored requests made by the DNB and kept a firm eye on the financial reporting processes and internal control systems. As part of the ongoing dialogue with the DNB, they acknowledged our efforts to maintain the highest level of compliance with applicable legislation, and the adequate functioning of the bank’s overall control mechanisms. In 2018 DNB conducted two on-site inspections at MBE. The first in relation to Credit Risk Management and the second in relation to DNB’s Risk Assessment System (the “RAS”). Both inspections were intensive but the results were positive. During the inspection the Management Board has continuously kept the Supervisory Board informed of the progress and where appropriate the Supervisory Board has been in direct contact with DNB. 2.5 Meetings of the Supervisory Board All members of the Supervisory Board are firmly committed and we believe have demonstrated this commitment throughout 2018. There were four formal Supervisory Board meetings and one Personnel Committee meeting. In response to continuing changes in the environment MBE operates in, the Supervisory Board decided in March 2018 to replace the Audit and Risk Committee with an Audit and Compliance Committee and a Risk Committee. The new committees enable a stronger focus on IT and outsourced operations and the risks related therewith, and a more detailed eye on compliance with ever increasing rules and regulations. The last meeting of the Audit and Compliance Risk Committee was held in March 2018. Further in 2018 one meeting of the Audit and Compliance Risk Committee and two meetings of the Risk Committee were held. In these meetings the Management Board, senior representatives of Internal Audit, Planning and Risk Management, Legal and Compliance and External Audit participated where appropriate. To enhance communication lines and better understand Mizuho Bank’s global strategy and how MBE can support Mizuho’s strategy in EMEA, the last Supervisory Board meeting in 2018 was held at Mizuho Bank’s London Branch. The exchange of views was considered very fruitful by all stakeholders, and further clarified and improved the cooperation between the Mizuho Amsterdam and London offices. The in-depth sessions on Brexit were informative and highly appreciated. In addition to the formal Supervisory Board meeting, several bilateral meetings were set up, allowing us to share knowledge and discuss matters with senior executives of Mízuho Bank Ltd’s main European branch. To ensure all key issues are addressed in the meetings of the Supervisory Board and its sub-committees, MBE uses a multiple year meeting planner. We approved the preliminary agenda and Permanent Education program for 2018 - 2019, as pre-discussed by all stakeholders. As with previous years, recurring topics such as governance, risk management, financials, resources, regulatory matters, (new) business initiatives, IT infrastructure, privacy, data protection and cybercrime, audit reports and legal and compliance matters will continue to have our full attention.