Financial Institutions and Services
Abstract
According to the new rules to be applied in the European Union, data on compensation of
material risk takers are to be disclosed from year 2014. This paper overviews the different expectations
regarding remuneration of bank managers highlighting the requirements of European Parliament and
Council. Furthermore, it analyses data of 18 European banks disclosed based on the new lawful
requirements. Based on empirical study it proves there is correlation between number of material risk
takers and value of total assets. However this correlation is not too strong.
References
Ayadi, N. & Boujelbene, Y. (2012). Compensation of the CEO, Board of Directors and bank risk taking.
Journal of Advanced Research in Management, Vol. III, No. 1, pp. 4-16.
Basel Committee on Banking Supervision (2010). Compensation Principles and Standards Assessment
Methodology.
Basel Committee on Banking Supervision (2011). Pillar 3 disclosure requirements for remuneration.
Behr et al. (2014). Financial Incentives and Loan Officer Behavior: Multitasking and Allocation of
Effort under an Incomplete Contract. SAFE Working Paper Series, No 62, pp. 27-28.
European Central Bank: Statistical Data Warehouse.
European Commission (2009). Commission Recommendation on remuneration policies in the financial
services sector.
European Parliament and Council (2013). 575/2013/EU regulation on prudential requirements for credit
institutions and investment firms and amending Regulation (EU) No 648/2012.
European Parliament and Council (2013). 2013/36/EU directive on access to the activity of credit
institutions and the prudential supervision of credit institutions and investment firms, amending
Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
European Parliament and Council (2014). Directive on establishing a framework for the recovery and
resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and
Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU
and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European
Parliament and of the Council.
Financial Stability Forum (2009). FSF Principles for Sound Compensation Practices.
Financial Stability Board (2009). FSB Principles for Sound Compensation Practices, Implementation
Standards.
Leisen, D. (2011). Bonus Deferral Does Not Choke Excessive Risk Taking. Journal of Risk, No 11, pp.
22.
Murphy, K.J. (2013). Regulating Banking Bonuses in the European Union: A Case Study in Unintended
Consequences, Center in Law. Economics and Organization Research Papers Series, No. C13-8.
Journal of Advanced Research in Management, Vol. III, No. 1, pp. 4-16.
Basel Committee on Banking Supervision (2010). Compensation Principles and Standards Assessment
Methodology.
Basel Committee on Banking Supervision (2011). Pillar 3 disclosure requirements for remuneration.
Behr et al. (2014). Financial Incentives and Loan Officer Behavior: Multitasking and Allocation of
Effort under an Incomplete Contract. SAFE Working Paper Series, No 62, pp. 27-28.
European Central Bank: Statistical Data Warehouse.
European Commission (2009). Commission Recommendation on remuneration policies in the financial
services sector.
European Parliament and Council (2013). 575/2013/EU regulation on prudential requirements for credit
institutions and investment firms and amending Regulation (EU) No 648/2012.
European Parliament and Council (2013). 2013/36/EU directive on access to the activity of credit
institutions and the prudential supervision of credit institutions and investment firms, amending
Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
European Parliament and Council (2014). Directive on establishing a framework for the recovery and
resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and
Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU
and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European
Parliament and of the Council.
Financial Stability Forum (2009). FSF Principles for Sound Compensation Practices.
Financial Stability Board (2009). FSB Principles for Sound Compensation Practices, Implementation
Standards.
Leisen, D. (2011). Bonus Deferral Does Not Choke Excessive Risk Taking. Journal of Risk, No 11, pp.
22.
Murphy, K.J. (2013). Regulating Banking Bonuses in the European Union: A Case Study in Unintended
Consequences, Center in Law. Economics and Organization Research Papers Series, No. C13-8.
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Published
2021-06-04
How to Cite
Collective Authors. (2021). Financial Institutions and Services: Array. Acta Universitatis Danubius. Œconomica, 12(2). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1120
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