Staff should have reasonable compensation and development options aligned with the behaviour they exhibit in implementing the bank’s desired values and culture. Remuneration, performance evaluation and promotion systems should be calibrated in such a way that they reward client orientation, long-term value creation and sound risk management practices rather than short-term revenues.
A first risk of the current cyclical phase is a sharp reduction in domestic consumption, to which firms could react by further restricting their purchases of capital goods and inputs.