EU tightens up bank lending rules and bonuses

On 16 April 2013 BBC News reported that the package of new rules, on bankers' bonuses and the amount of capital that banks must hold as a buffer, has been agreed with EU governments and most of it is likely to take effect on 1 January 2014.

The EU plans to cap bonuses at 100% of a banker's annual salary, or 200% if shareholders approve.

UK Chancellor George Osborne stood isolated after EU finance ministers agreed on the plan to rein in bankers' bonuses, and said the UK already had the toughest regime in Europe for bankers' pay and bonuses and that a cap could "have a perverse effect".

On the 23 January 2014, EUObserver reported on a paper published by credit ratings agency Fitch, which said that the EU's new bank bonus rules were unlikely to have much effect on executive pay.

• Primary Source

ESO: Background information: EU hails 'breakthrough' deal to cap bankers’ bonuses http://www.europeansources.info/record/eu-hails-breakthrough-deal-to-cap-bankers-bonuses/

EUObserver, 17.04.13: MEPs confirm bank bonus cap http://euobserver.com/economic/119823

EurActiv, 17.04.13: Parliament gives green light to cap bankers’ bonuses http://www.euractiv.com/euro-finance/parliament-curbs-bankers-bonuses-news-519181

EUObserver, 23.01.14: EU bonus cap to have little impact on bank pay http://euobserver.com/economic/122852

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