Fri, 19 September
16.1 C
Yerevan
USD: 382.85 RUB: 4.59 EUR: 450.23 GEL: 139.96 GBP: 516.62

ECB signals tougher approach on bankers’ pay

YEREVAN, January 30. / ARKA /. The European Central Bank has signalled a tougher approach on bankers’ pay, announcing that it will launch an examination of bonus payments and share options made by lenders, vestifinance.ru reported citing The Financial Times.

The ECB, which took the reins for supervising the eurozone’s biggest lenders last November, said on Thursday it had notified banks that it would “thoroughly examine” their policies on variable pay, such as bonuses and share options.

The ECB said it would take banks’ capital situation into account when examining pay, saying remuneration “should be consistent with a bank’s ability to maintain a sound capital base”. It expects the review to take place over the course of 2015.

The ECB’s focus on the capital base follows fractious discussions between regulators and the management of Monte dei Paschi di Siena, Italy’s third-largest bank by assets, according to people familiar with the matter.

Fabrizio Viola, chief executive of Monte Paschi, was forced to cap his salary at euro 500k, from euro 3.5m the previous year, in order to gain Brussels’ approval for its state bailout bonds. But in return for the pay cut, Viola accepted a euro 1.2m bonus that would be awarded by the bank’s board once he succeeded in raising a euro 5bn capital increase demanded by Brussels as a condition of the bank receiving state aid.

The move to assess variable pay across eurozone banks — to be conducted by the ECB’s supervisory wing, known as the single supervisory mechanism — comes amid wider moves by other regulators after the global financial crisis.

The European Banking Authority, which tries to harmonies how national supervisors across the EU implement directives from Brussels, is putting out its own proposals on the matter after its next board meeting at the end of February.-0-

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Net loan portfolio of Armenian banks in Q2 2025 increased by 6.11% to AMD 6.8 trillion

The combined loan portfolio of 17 Armenia-based commercial banks upped  by 6.11% in Q2 2025 compared to Q1 2025, amounting to AMD 6.82 trillion, according to a ranking compiled by  the ARKA news agency.

Ranking of the most profitable banks in Armenia based on results of second quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the second quarter of 2025.

Ranking of most profitable banks in Armenia based on results of first quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the first quarter of 2025.

3.6% inflation registered in Armenia in August

n the consumer market of Armenia, 12-month inflation in August of this year amounted to 3.6%, according to the report of the National Statistical Committee (NSC) of Armenia.

LATEST NEWS

spot_imgspot_imgspot_img