EBA may issue binding rules on bankers' pay

DUBLIN: The European Banking Association (EBA) is considering legally binding rules on bankers' pay and bonuses, its executive director said on Monday.

The EBA was last month tasked by the EU to look into pay ratios as part of draft laws on capital and liquidity. It has until the end of 2013 to explore the issue.

"We might issue technical standards on remuneration" which would be legally binding, EBA executive director Adam Farkas told journalists. "It is unlikely it would come before the end of this year," he said.

The regulations would address bank remuneration in general, but would focus on bonuses, Farkas said.

The EBA has been assessing the implementation of voluntary guidelines issued by its predecessor organisation, the Committee of European Banking Supervisors, which will hopefully be completed by the end of the year, Farkas said.

Copyright Reuters, 2011