Rein in bonuses and help businesses and households survive the crisis - that's the advice for banks from the European Commission
LONDON - Banks should rein in bonuses to boost their capacity to help businesses and households hit by the coronavirus crisis, the European Union’s executive said on Tuesday.
The easing of capital and accounting rules will be temporary, and the package needs to be approved by EU states and the European Parliament by June at the latest to have the full effect, he said. Tuesday’s package offers flexibility in how provisions are calculated and to delay their eventual hit to a bank’s capital buffer to avoid lending turning into a trickle in the face of mounting bad loans caused by the pandemic.
FILE PHOTO: European Union flags fly outside the European Commission headquarters in Brussels, Belgium, February 19, 2020. REUTERS/Yves Herman
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