Actions in the following areas were suggested: 1) strengthening boards and management; 2) promoting the risk management function; 3) reining in compensation for bank management and staff, and shifting performance-based incentives more for the long term; 4) improving risk disclosure and 5) strengthening sanctioning powers.
Conclusions Banks are the backbone of the financial system, and their health is vital to regaining solid growth in the EU-wide economy. The structural proposals our group made rest on the idea of maintaining the possibility to supply all financial services within a single banking group.