The new code of conduct will include capping bonuses and making sure they can be clawed back in the future. It was adopted by the Netherlands Bankers' Association (NVB) and will apply to all bankers based in the Netherlands from 1 January 2010.
Dutch banks have adopted a new code of conduct which will include capping bonuses and making sure they can be clawed back in the future.
Dutch Finance Minister Wouter Bos welcomed the voluntary code and said that it would be enacted into law. He added that the rest of the world should use the rules as a model for their own banking sectors. Executive bonuses will be capped at 100% of salary and redundancy pay will be limited to one year's salary.
The code of conduct was adopted by the Netherlands Bankers' Association (NVB) and will apply to all bankers based in the Netherlands from 1 January 2010. All members of banks' executive boards will have to sign a declaration on moral and ethical conduct, including a promise to "perform my duties as a banker with integrity and care".
The Dutch government was among those that pumped billions of Euros into their banks. It nationalised the Dutch assets of Fortis Bank. There has been much discussion, including among G20 ministers, of whether bonus structures encouraged bankers to take excessive risks, bringing about the banking crisis. Mr Bos said he planned to take the new rules to the G20 summit in Pittsburgh later this month as an example of what could be done.
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