Basel Com­mit­tee calls for banks to pub­lish de­tails

The Pak Banker - - Front Page -

BERNE: The Basel Com­mit­tee of the world's fi­nan­cial reg­u­la­tors has called for banks to dis­close their bonuses in a new con­sul­ta­tion paper.

The paper calls for banks to pub­lish de­tails on how pay is linked to per­for­mance, as well as to­tal fig­ures for dif­fer­ent types of re­mu­ner­a­tion.

The new calls would cover the likes of top man­agers, risk man­age­ment staff and "other ma­te­rial risk tak­ers". A con­sul­ta­tion process is ex­pected to con­clude on Fe­bru­ary 25, 2011.

The paper says that the pro­posed re­quire­ments "will sup­port an ef­fec­tive mar­ket dis­ci­pline and will al­low mar­ket par­tic­i­pants to as­sess the qual­ity of the com­pen­sa­tion prac­tices and the qual­ity of sup­port for the firm's strat­egy and risk pos­ture".

The Com­mit­tee said that pre­vi­ous, less de­tailed guide­lines had been ap­plied in­con­sis­tently by dif­fer­ent coun­tries, mak­ing pay com­par­isons dif­fi­cult. The Com­mit­tee says t hat de­tails on how pay i s de­cided and linked to per­for­mance would be as­sessed in the new struc­ture, how­ever it says it would have to rely on mar­ket and peer pres­sure f or im­ple­men­ta­tion of mod­er­ate pay lev­els. -PB News

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