Last month, the European Commission produced a recommendation report for banking standards in the EU, and mandated for stricter limits on bank loans and investments, reported BBC News. The government announced it will support the majority of suggestions by the Parliamentary Commission for Banking Standards.
One of the new regulations will include a criminal offense of reckless misconduct of top bankers that may lead to incarceration. Banker bonuses will be pushed back by at least 10 years, and may become repayable if the bank needs a bailout.
However, the government revealed that it will not support enforcing stricter limits on banks’ risk-taking, and they do not support dropping bank holding company.
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