Deutsche HR pro says bonus cap could increase systemic risk

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Deutsche Bank HR professional Steven Ward says more risk might enter system because of difficulty in retaining or attracting top talent

The Guardian reports that banks have warned the European Union that plans to cap bonuses exceeding €500,000 (£428,000) would drive talent away and would not accurately identify risk takers.

The European Banking Authority fielded questions from banks at a public hearing on how it intended to identify individuals who raised an institution's risk profile.

Attending a public hearing on the consultation paper, Steven Ward of Deutsche Bank said that talented people would be put off working in European banking. 'Given that we will not have globally a level playing field, our ability internationally, particularly in the US and Asia, to attract and retain key control function staff particularly in risk management is impacted by where that threshold is set.

'So I worry that we could introduce more risk into the system by not being able to retain or attract the right quality of people outside Europe'.

Hit the link below to access the complete Guardian article:

€500,000 bankers' bonus cap 'could increase risk'

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