13 To support the separation of the sub-cultures of retail and investment banking, the High-level Expert Group strongly promotes the strengthening of capabilities of boards and management to run large complex banks and use of remuneration schemes that create long-term, rather than short-term incentives (Proposal 5).
I agree with Wayne Byres who notes that “ensuring that incentives are working in the right direction in the diverse and complex organisations such as today’s banks is easier said than done”. 14 However, separation of deposit banking and trading entities, by making organizations simpler, can help in building the right incentives.