BIS Review 100/2008  3  New rules on bank governance came into effect recently; one of their provisions requires that the criteria for the remuneration of bank managers be designed so as to avoid perverse incentives in the matter of risk taking and risk management.
This is particularly true in bank-based economies, where capital markets are less developed. •  Eliminating the fragmentation of financial markets will loosen tight credit standards in the member states of the periphery, allowing banks to finance investment.