Basel Committee unveils new disclosure norms for banks

The Basel Committee on Banking Supervision, which is overseeing global reforms in the sector, today unveiled new guidelines that would require lenders to publish all details on their pay policies, particularly bonuses and performance incentives.

In the wake of global outcry against 'obscene' salaries and bonuses received by leading bankers, who caused the global financial crisis in 2008, the Committee has stipulated stringent capital adequacy requirements. It has come down heavily on the salary benefits that fuelled bankers to take such huge risks that eventually led to global economic meltdown.

"These disclosure requirements, developed in consultation with the Financial Stability Board, will support effective market discipline by allowing market participants to assess the quality of a bank