Toughest rules on bankers’ bonuses passed by MEPs

RULES to cap bankers’ bonuses and make sure they do not benefit from taking excessive risks with other people’s money have been voted through by the European Parliament.

Irish banks and others bailed out by the state will be subject to even tougher measures that will restrain the overall amounts paid in bonuses to bankers and directors, encouraging bankers to prioritise a stronger capital base and loans to the real economy rather than their own pay and perks.

The rules are the toughest in the world so far and were agreed despite some of the industry warning that it would force the best of their profession to move to countries outside the EU.