EU Parliament Ups Bank Capital Minimums, Caps Bonuses

Law360, New York (April 16, 2013, 4:29 PM EDT) -- The European Parliament has passed a financial reform law aimed at curbing excessive risk-taking, requiring the region’s banks to hold more high-quality capital and capping bonuses for bank employees at a maximum of twice their base salaries, it announced Tuesday.

Under the terms of the statute, which goes into effect at the beginning of 2014, banks must hold at least 8 percent of “good quality” capital against their risk-weighted assets by 2019. It also caps bankers’ bonuses at an amount equal to their yearly salary, or...
To view the full article, register now.