Chairman of the Parliamentary Commission for on Banking, Conservative MP Andrew Tyrie
Media playback is unsupported on your device
Video

Deferred bonus plan for banking

Bankers making potentially risky decisions will not receive bonuses or payments for those deals until the full extent of the risk involved is known, following a report from a parliamentary commission.

Chairman of the Parliamentary Commission on Banking, Conservative MP Andrew Tyrie, said bankers currently faced a "one-way bet" where they "can more or less walk away" if they make a bad decision.

He said deferring bonuses and other payments until the full extent of the risk and outcome was known would reduce the incentive to gamble with funds.

  • 18 Jun 2013