Belgian bank KBC is responding to pressure from regulators and investors by revamping its management team, replacing the executive who oversaw the bank’s downfall in the credit market and separating risk management and financial management functions, reports The New York Times.
Jan Vanhevel is the bank’s new CEO, succeeding André Bergen, who is stepping down. Bergin has been on leave since May after having heart surgery. Vanhevel, who headed the bank’s businesses for Central and Eastern Europe, has been serving as interim chief executive.
Guido Segers, head of the merchant-banking business, resigned effective August 1. He will be replaced by Luc Polpelier, who become CEO of the market activities within the merchant banking unit. Vanhevel will oversee corporate banking.
The changes are in response to the latest injection of state funds, according to the European Commission. Belgium must draw up an in-depth restructuring plan for the bank within three months to show how it plans to counter distortions of competition because KBC has received more state help than rivals elsewhere.