OTC MARKET NEWS Powered By Quantifi

Next euro area bank test could include misconduct risk: ECB 

November 24, 2015

Balazs Koranyi, Reuters

The European Central Bank will take a closer look at banker pay, which it sees a possible source of trouble, and wants conduct risk to be part of its next stress test of the sector, the ECB's chief bank supervisor said on Monday.

"We see incentives - both financial and non-financial - as having a critical role, since their misalignment with business and risk culture objectives is at the heart of misconduct," Daniele Nouy told a conference.

Banks are under pressure to clean up their operations and reputation after euro area governments were forced to put up tens of billions of euros in guarantees and cash since 2008 to prop up the sector. So far only 40 percent of state money has been recovered. Read more

 
Comments are closed on this post.

Subscribe

Submit your email to receive our newsletter

GO