EU rules on remuneration for credit institutions and investment firms work, but the proportionality principle needs to be clarified

On the 28 July 2016, the European Commission released a report on the remuneration rules for credit institutions and investment firms. The EU rules on remuneration had been brought in after the financial crisis and have been proven as generally effective in curbing excessive risk-taking behaviour and short-termism.

In light of these findings, the European Commission will conduct an impact assessment, which will look into a possible clarification of these rules and their application to the smallest and least complex institutions. This would be part of the wider revision of the Capital Requirements Directive (CRD) and the Capital Requirements Regulation (CRR), now under consideration.

• Primary Source

European Central Bank: Banking supervision: Banking union http://www.europeansources.info/record/banking-supervision/

ESO: Key Source: European Banking Union http://www.europeansources.info/record/european-banking-union-2/

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