Bowles: Strengthening EU banks to get Europe back on the path to growth and trade

Sharon Bowles MEPSharon Bowles MEP, Chair of the European Parliament’s Economic and Monetary Affairs Committee, today welcomed the vote in favour of the Capital Requirements Directive and Regulation, which implements Basel III – the international accord which sets global standards for banks – into EU law. 

While in recent weeks the hotly politicised subject of capping bankers’ bonuses has dominated the headlines this measure is in fact part of a much larger raft of legislation which will increase banks’ resilience to future financial crises by requiring them to have higher capital buffers to absorb losses and hold more easy-to-sell liquid assets. In addition, the regulation and directive introduce various other measures to strengthen corporate governance and transparency, and encourage growth and lending to the real economy in the EU.

Sharon Bowles MEP said: Continue reading

Bowles: “Today’s agreement on a bankers’ bonus cap will usher in a much needed culture change”

Sharon Bowles MEPFinal agreement on a cap for bankers’ bonuses will be reached tonight in Brussels with the completion of the last trialogue negotiation between the European Parliament and European Commission. 

New rules on bonuses, incorporated in the updated Capital Requirements Directive (CRD), include:

  • A salary / bonus ratio of 1:1 which can be raised to 1:2 with a shareholder vote of 65% if there is a 50% quorum or 75% vote if no quorum applied.
  • Up to 25% of the bonus can be paid in long-term instruments (deferred for five years) linked to the capital, and therefore stability, of the bank.* Continue reading