[New post] Does the bonus cap work?

BankUnderground posted: " Qun Harris, Ieva Sakalauskaite and Misa Tanaka After the 2007–08 Global Financial Crisis (GFC), several jurisdictions introduced remuneration regulations for banks with the aim of discouraging excessive risk-taking and short-termism. One such regu" Bank Underground Does the bonus cap work? BankUnderground Feb 3 Qun Harris, Ieva Sakalauskaite and Misa Tanaka After the 2007–08 Global Financial Crisis (GFC), several jurisdictions introduced remuneration regulations for banks with the aim of discouraging excessive risk-taking and short-termism. One such regulation is the bonus cap rule which was first introduced in the European Union (EU) and the United Kingdom (UK) in 2014. This post examines whether the bonus cap mitigates excessive risk-taking and short-termism, both in theory and in practice. It also discusses unintended consequences highlighted by the literature. Read more of this post "Does the bonus cap work?" Comment Unsubscribe to no longer receive posts from Bank Underground. Change your email settings at manage subscriptions. Trouble clicking? Copy and paste this URL into your browser: https://bankunderground.co.uk/2023/02/03/does-the-bonus-cap-work/ Powered by WordPress.com