The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Britain's highest-profile banker argued that it was not possible to stop paying bonuses without severe consequences for business and the broader banking sector. (...) "There was a period of remorse and apology; that period needs to be over. We need our banks willing to take risks, to be confident and to work with the private sector in the UK to create jobs and improve economic growth," he said at a hearing examining the retail banking sector.
(...)
"There was a period of remorse and apology; that period needs to be over. We need our banks willing to take risks, to be confident and to work with the private sector in the UK to create jobs and improve economic growth," he said at a hearing examining the retail banking sector.
FT Wind power
Of course, there won't be as much easy money around to pay bonuses with...
But actually, the problem is convincing the central bank to do this. The retail banks can be bought simply by paying the policy rate on regulatory reserves as well as excess reserves. Do they deserve that subsidy? Arguably yes, since regulatory reserves arise when people deposit money (or keep borrowed money) in the bank. So the difference between the support rate and the retail rate would be the government subsidy for banks who manage the payment clearing infrastructure.
- Jake Friends come and go. Enemies accumulate.
Repairing the financial sector swiftly to find the path to recovery There is a strong correlation between healthy credit expansion and sustained economic development. Balance sheet repair in the banking sector is essential to improve cost efficiency, restore competitiveness and return to normal lending. A swift exit from sizable public support to banks will remove possible distortions to competition in the financial industry. Furthermore, confidence in the banking sector is a prerequisite for maintaining financial stability. This is now being corrected through a more robust EU regulatory framework, a future permanent "European Stability Mechanism" to be established by 2013 to safeguard the financial stability of the euro area as whole, as well as tougher capital requirements on banks (Basel III agreement).
There is a strong correlation between healthy credit expansion and sustained economic development. Balance sheet repair in the banking sector is essential to improve cost efficiency, restore competitiveness and return to normal lending. A swift exit from sizable public support to banks will remove possible distortions to competition in the financial industry. Furthermore, confidence in the banking sector is a prerequisite for maintaining financial stability. This is now being corrected through a more robust EU regulatory framework, a future permanent "European Stability Mechanism" to be established by 2013 to safeguard the financial stability of the euro area as whole, as well as tougher capital requirements on banks (Basel III agreement).
by gmoke - Aug 14 2 comments
by Frank Schnittger - Aug 12 8 comments
by Oui - Aug 12 9 comments
by Frank Schnittger - Aug 1 20 comments
by Frank Schnittger - Aug 3 4 comments
by Oui - Jul 12 52 comments
by gmoke - Aug 1
by gmoke - Jul 31 3 comments
by Oui - Aug 151 comment
by gmoke - Aug 142 comments
by Frank Schnittger - Aug 128 comments
by Oui - Aug 129 comments
by Oui - Aug 940 comments
by Oui - Aug 716 comments
by Frank Schnittger - Aug 34 comments
by Oui - Aug 31 comment
by Oui - Aug 211 comments
by Frank Schnittger - Aug 120 comments
by gmoke - Jul 313 comments
by Oui - Jul 3016 comments
by Oui - Jul 30
by Oui - Jul 261 comment
by Oui - Jul 253 comments
by Oui - Jul 239 comments
by Oui - Jul 1971 comments
by Oui - Jul 1932 comments
by Oui - Jul 1693 comments