Large banks to face bonus payment review

18 May 2011

The biggest international banks in the world look set to face a review into their bonus policies.

In a statement, the Financial Stability Board (FSB) announced it is planning to check up on major lenders to see whether or not they have complied with the payment curbs that were agreed on a global scale.

The organisation - comprised of central bankers and industry figures from the top 20 economies on the planet - revealed that as well as surveying regulators and supervisors, it will also question a number of major firms directly.

A review held by the group in 2010 suggested that another report was necessary in 2011 as implementation of the FSB principles were not satisfactory.

Bloomberg recently reported that the Basel Committee on Banking Supervision has recommended that banks should vary their bonus strategies depending on the risk-taking levels that their employees adopt, thus ending their one-size-fits-all approach.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development