Bonus regulation: aligning reward with risk in the banking sector

Marilena Angeli () and Shahzad Gitay ()
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Marilena Angeli: Bank of England
Shahzad Gitay: Bank of England

Bank of England Quarterly Bulletin, 2015, vol. 55, issue 4, 322-333

Abstract: Remuneration policies in the banking sector incentivised excessive risk-taking, thereby contributing to the financial crisis. Since the crisis, remuneration rules have come into force to better align employees’ incentives with the long-term health of banks and the financial system. This article explains the key components of the Prudential Regulation Authority’s remuneration rules for banks and considers the direction of the global policy agenda.

Date: 2015
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Citations: View citations in EconPapers (5)

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