Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
A top European Central Bank official wants to give risk managers more power to keep banker bonuses in check, just as senior industry executives are calling for Europe to follow the UK in loosening restrictions introduced after the financial crisis.
ECB supervisory board member Elizabeth McCaul told the Financial Times that the central bank was keen for senior risk management staff to “ensure that compliance with the risk appetite framework is used as an input of . . . variable remuneration” including setting the bonus pool and performance targets.
“I think we could do more to strengthen the hand of risk managers,” she said.
Her comments come in the week that Deutsche Bank’s chief executive called for the EU to lift rules capping bonuses at twice salary and Santander’s chair welcomed the UK’s decision to do so. But McCaul said regulators were “very happy” with how the rules were operating in Europe.
The ECB directly supervises 109 of the eurozone’s biggest banks, which oversee more than 80 per cent of their countries’ banking assets, making it…
