Banks bracing for release of white paper

The financial services sector is preparing itself for a major overhaul in the
lead up to today’s financial services white paper being release by Chancellor
Alistair Darling.

One of the new measures is likely to be a curbing of bonus pay which would be
linked to the long term profitability of a financial institution.

Those engaged in more risk-laden activities would also face heavier capital
and liquidity requirements.

Angela Knight, CEO of the British Bankers’ Association said banks recognise
the need for change and are prepared to work with authorities in restoring the
UK economy.

She said the white paper on financial services ia part of an ongoing reform
programme.

‘We welcome moves to create better coordinated financial stability jointly
with the FSA and the Bank of England.

‘We are already working with the FSA on pay structures which reward
individuals who contribute to long-term success and do not reward undue risk
taking,’ she said.

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