Bank Of England Warns: Bonuses Fuel Risk-Taking

FRONT PAGE

PERFORMANCE-related bonuses play an important role in risk management, according to a new report from the Bank of England (BoE). The BoE's Financial Stability Review warns banks that the common practice of paying bonuses based on profitability encourages traders to take excessive risks.

The BoE's warning comes on the heels of the latest "rogue trader" scandal to hit the UK. Kyriacos Papouis, a former options trader at London-based NatWest Markets, allegedly covered up a £50 million trading loss

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here