Please turn on JavaScript. Media requires JavaScript to play. Britain's five largest banks are to accept the curbs on bonuses agreed by G20 leaders at the recent Pittsburgh summit, Alistair Darling has announced. The five banks that have signed up to the new rules are Barclays, HSBC, Lloyds, RBS and Standard Chartered. While the curbs do not limit bonuses, the changes will include the banks having to disclose all such payments. The chancellor said UK banks were leading the way, and he expected them to set the global standard for others. "It is vital that our financial services industry remains at the forefront of the industry globally and takes a responsible and long-term approach to remuneration," he said. Risk management Banks have been under pressure to limit large bonuses since the credit crisis. ANALYSIS BBC Business Editor Robert Peston The bankers have agreed to end the scandal of bonuses being paid for short-term profits that turned out to be an illusion. This is significant, but let's not get carried away. The Financial Services Authority demanded this of them some months ago, and it is actually what the banks are already doing. So this was a pretty easy commitment for them to make, and it certainly doesn't mean it is going to be a bleak Christmas for bankers. It has been a good year for many of them and they will still get these bonuses - some of them will be very big - but they won't be able to get their hands on the cash for at least two or three years. Excessive bonuses were considered to be a significant cause of the big losses in the banking sector, because they encouraged investment bankers to take excessive risks. The five banks said in a joint statement that "it is essential that banking reward is consistent with effective risk management and that there is parity both nationally and internationally on these issues". They will now comply with the new rules on remuneration that city regulator the Financial Services Authority (FSA) first announced in August and will be put into force on 1 January, in line with the G20 agreement. The five banks that have agreed to limit their staff bonuses include three that have not needed access to emergency government funds - Barclays, HSBC and Standard Chartered. Key elements of the FSA's new rules include: • Minimum bonus agreements should be limited to just one year • Bonuses should be clawed back in the result of a person's poor performance • Senior executives should have between 40% and 60% of their bonus payments deferred over three years, with at least 50% paid in shares. The same rule applies for other bank employees who make the most risky investment decisions • Firms will be required to publish an annual report on their bonus payments • Large banks should have an independent committee to determine bonus payments • Banks must ensure that their total remuneration payments to staff do not affect the underlying financial health of the business.



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