LONDON (Reuters) – Banks are failing to comply with global rules requiring them to peg bonuses to long-term company performance, the regulatory task force of the Group of 20 leading economies said on Wednesday.
The G20 approved principles in the aftermath of the 2007-09 financial crisis to stop bonuses from encouraging excessive risk taking.
LONDON, June 13 (Reuters) – Audits of British banks have
improved but accountants must challenge more of what their
clients tell them about bad loans on their books, the accounting
industry watchdog said on Wednesday.
Many policymakers blame insufficient auditor scepticism for
clean bills of health given to banks just before they had to be
rescued by taxpayers in the 2007-09 financial crisis.
FRANKFURT/LONDON, June 12 (Reuters) – A European banking
union needs to be anchored in a fiscal union with powers to stop
countries breaking budgetary rules, Germany’s Bundesbank said on
Tuesday, effectively rebuffing pressure for rapid moves to shore
up euro zone banks.
“In a banking union, a crisis in one country’s banking
system may require the use of taxpayer money from other
countries,” Bundesbank vice president Sabine Lautenschlaeger
said in the text of a speech at a banking supervision
LONDON (Reuters) – Global bank regulators warned the European Union it risked watering down agreed bank capital rules designed to avert another financial crisis and called for more consistency in implementing the regulations.
The Basel Committee on Banking Supervision said in a report it wanted to resolve “consistency issues” with the EU’s approach to enforcing their Basel III rules.
LONDON, June 8 (Reuters) – Britain must spell out more
clearly how much capital banks must hold otherwise it will be
hard for them to help the economy and foreign lenders may pull
out, a top representative of the financial services industry
The City of London, home to a large chunk of the sector,
hosts its annual dinner for bankers on Thursday where it hopes
UK finance minister George Osborne will signal a more
accommodating tone on regulation.
LONDON (Reuters) – A global system to tag trades in stocks, bonds and derivatives that would help authorities spot risks and market abuse must be in place by March 2013, regulators said on Friday.
The Financial Stability Board (FSB), a regulatory task force working for the G20, spelt out how a global Legal Entity Identifier or LEI system would work.
LONDON, June 8 (Reuters) – Regulators could take a more
hands-on approach to supervising the risks individual banks face
to avoid relying on flawed in-house computer models that failed
to predict losses at JPMorgan, a top Bank of England
official said on Friday.
The models are used by banks to set limits on how much risk
traders should take on and for calculating how big a bank’s
regulatory capital buffer should be.
LONDON, June 7 (Reuters) – Global regulators may intervene
and iron out differences in how the United States and European
Union have cracked down on lax underwriting of securitised debt,
as the market shows little sign of a real revival to help
The International Organisation of Securities Commissions
(IOSCO) said in a report for public consultation on Thursday
that securitization was a valuable funding technique and an
efficient means of diversifying risk.
LONDON, June 7 (Reuters) – The ability to repay a home loan
will be more closely scrutinised under the European Union’s
first set of rules on mortgages that were backed by the bloc’s
parliament on Thursday.
The rules aim to curb irresponsible lending in the EU’s 6.4
trillion euro mortgage market which contributed to property
bubbles in Spain, Britain and Ireland and helped drag down
banks, requiring costly taxpayer bailouts.
BRUSSELS, June 6 (Reuters) – Global regulators agreed on
minimum rules on Wednesday to shed light on the $700 trillion
derivatives market, after being hamstrung by a dearth of
information in the credit crunch, and to deter firms from moving
trades to less regulated countries.
Leaders of the world’s top 20 economies (G20) agreed three
years ago that from the end of 2012 derivatives trades should be
recorded and centrally cleared and executed on electronic