ZURICH: Switzerland’s authorities, drawing on the teachings of the collapse of Credit score Suisse, on Wednesday (Aug 12) launched consultations on new banking guidelines that might restrict bankers’ bonuses.
The Federal Council stated the consultations would cowl measures designed to “strengthen company governance”, guarantee banks are ready for crises, and grant larger powers to the monetary market supervisory authority (FINMA).
“The purpose is to strengthen resilience and confidence within the Swiss monetary system while defending our economic system, taxpayers and the state,” Finance Minister Karin Keller-Sutter instructed journalists in Bern.
The proposed measures focus particularly on bankers’ bonuses. They suggest to withhold or get well bonuses from “probably the most senior or most extremely paid managers at systemically essential banks” within the occasion of rule-breaking or mismanagement.
The objective is to keep away from fee packages that encourage extreme risk-taking.
“The Federal Council desires remuneration to be geared in direction of long-term revenue,” stated Keller-Sutter.
The session will begin in late August and run till November.
