The head of banking supervision at the ECB has said that Irish bankers do not deserve bonuses until they have cleared up all the problems in the Irish banking sector.
"Is this the moment right now to think about bonuses when you still have work to do on your balance sheet, to clean the balance sheet before the next crisis?," Daniele Nouy said in an interview with RTÉ News.
"Definitely not in my view," she stated.
ECB chief bank regulator says no to banker bonuses until they have cleaned up the mess from the past and compensated victims pic.twitter.com/tdE7usHpYL
— RTÉ News (@rtenews) April 25, 2018
The ECB banker also said that troubled banks have to get permission from the ECB's committee of bank supervisors if they want to pay bonuses or dividends.
She said that in the case of weak banks that have not done what they are required to do, this permission will not be forthcoming.
"A number of banks need to get authorisation - on a case by case basis - of the SSM (Single Supervisory Mechanism) supervisory board to deliver these bonuses or pay dividends because we consider they are not strong enough to be doing that, so these banks will have to ask authorisation and they are likely not to get it," Ms Nouy stated.
