Deutsche Bank CEO argues for lifting bonus caps and discusses changes in risk culture
- Banking culture has ‘completely changed’ since 2008 crash
- Deutsche Bank CEO argues lifting caps on bankers bonuses will not lead to excessive risk-taking
- Risk culture and mindset of people in banks have shifted towards more risk-averse thinking
- Deutsche Bank CEO calls for Europe to follow UK in lifting bonus caps
- Removing bonus cap should be considered with the understanding that risk culture has changed
- Restrictive regulation has contributed to decline of European capital markets
Deutsche Bank CEO Christian Sewing has stated that the banking sector’s risk culture has ‘completely changed’ since the 2008 crash. He believes that lifting caps on bankers bonuses will not result in excessive risk-taking, as the majority of bank CEOs now have a long-term view of stable income streams. Sewing also calls for Europe to follow the UK in lifting bonus caps, emphasizing that the risk culture has shifted. However, he stresses that the potential removal of the bonus cap should be done with caution and an understanding of the changed risk culture. Sewing argues that restrictive regulation has contributed to the decline of European capital markets, and calls for a level playing field that ensures the robustness and soundness of banks while maintaining competitiveness.
Factuality Level: 7
Factuality Justification: The article provides quotes and statements from Deutsche Bank CEO Christian Sewing regarding the risk culture in the banking sector and the lifting of caps on bankers’ bonuses. The information presented is based on Sewing’s perspective and statements made at the Global Banking Summit in London. While the article does not provide additional sources or perspectives, it does not contain any obvious misleading information or inaccuracies. However, it is important to note that the article does not provide a comprehensive analysis of the topic and may lack depth and context.
Noise Level: 3
Noise Justification: The article provides some relevant information about Deutsche Bank CEO Christian Sewing’s views on the risk culture in the banking sector and the lifting of caps on bankers’ bonuses. However, the article contains some repetitive information and lacks depth in its analysis. It does not provide evidence or examples to support its claims, and it does not offer any actionable insights or solutions. Overall, the article has a low noise level but lacks intellectual rigor and depth.
Financial Relevance: Yes
Financial Markets Impacted: The article pertains to the banking sector and discusses the risk culture and regulations in place for bankers’ bonuses. It mentions Deutsche Bank and Credit Suisse as examples.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the changes in the risk culture of the banking sector since the 2008 crash and the potential lifting of caps on bankers’ bonuses. While it does not mention any extreme events, it provides insights into the financial industry and its regulations.
Public Companies: Deutsche Bank (DBK), Credit Suisse (undefined)
Key People: Christian Sewing (CEO), Bim Afolami (U.K. City minister)
Reported publicly:
www.marketwatch.com 
