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New bonus row for Europe's banks?

22 July 2011

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New bonus row for Europe's banks?
Banks in Europe could become embroiled in a new argument regarding the level of bonus payouts they are permitted to give.

The European Banking Authority (EBA) will consider how lenders across the continent are able to balance handouts and salaries, which could see them implement an imposed ratio, Reuters reports.

Such a strategy has caused consternation in the banking sector in the past and a new focus on the option could reignite the debate.

Tom Gosling, a partner at PricewaterhouseCoopers, said that although the proposal will not cause panic in the industry, it is likely to dismay many.

"The fact that this specific issue has been highlighted shows there is a sense of unfinished business around pay," he added.

Any judgement by the EBA - which came into being at the beginning of January this year - may not be sudden, however, as it has been given until the end of 2013 to look into the issue.

By Asim Shah

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