BoE’s Bailey slams European bonus caps
PRA chief executives warn incentive structures will be damaged
The Bank of England's Andrew Bailey yesterday hit out at what he saw as a mistaken attempt by the European Union to impose caps on bankers' bonuses.
Bailey, the chief executive of the UK's Prudential Regulation Authority, said the cap risked damaging incentive structures designed to improve conduct at banks.
The bonus caps are part of Europe's CRD IV, and came into effect this year. The rules specify that bonuses cannot exceed 100% of base salary, although they can rise to 200% with shareholder
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