LONDON, June 11 The European Union's banking
watchdog will consult with the banking industry in December on
whether banks can offer staff extra allowances without busting
an EU cap on bonuses
The EU has approved a law that caps bankers' bonuses to no
more than twice their salary, but some lenders are paying
monthly or quarterly allowances to boost salaries to mitigate
the bonus limit.
The European Banking Authority (EBA) is studying whether
such allowances are in breach of the EU bonus cap and its
chairman, Andrea Enria, said on Wednesday there will be
preliminary findings available soon.
"We will have a consultation paper in December on this
issue," Enria told reporters.
"But in the meanwhile we are already reviewing the practices
and probably in the coming weeks we will come out with some
preliminary assessment of the practices we have seen in the
market," Enria said.
"We have to go through the contracts, the framework
contracts and understand how they work and whether they are in
line with the legislation," Enria added.
(Reporting by Huw Jones; Editing by Pravin Char)