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Europeans bankers face tougher bonus rules

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Europeans bankers face tougher bonus rules

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EU lawmaker have agreed that from early next year the region’s bankers will not be allowed to take more than a third of those bonuses in cash.

The idea is to ensure the bonuses are linked to long-term performance rather than being cash rewards for short-term risk-taking.

Banks will also have to hold around three times as much capital against their trading books as before the economic crisis.

European Parliament members are due to vote on the rules next week.

It will be the first cap on how bankers are paid and a victory for EU lawmakers who have otherwise become bogged down in efforts to regulate banking.