Andrew Haldane, Bank of England executive director for financial stability, said the structure of bank pay still needs to change to include credit instruments and minimize risks associated with some equity packages.
U.K. government plans to insulate consumer banks from future crises should be toughened and show less “flexibility,” said Andrew Haldane, the Bank of England’s executive director for financial stability.
Bank of England official Andrew Haldane said lenders should change how they calculate performance-based pay for executives and end the “equity dictatorship” that pushes them into excessive risk taking.
A planned international limit on bank indebtedness will be on the agenda of every meeting of the Basel Committee on Banking Supervision this year as regulators seek to wean lenders off their addiction to debt, according to three people familiar with the talks.
The U.K. Financial Policy Committee may target unregulated bank transactions as it seeks to prevent bubbles and end the “ Chuck Prince dynamic,” said Andrew Haldane , a Bank of England official and member of the new panel.