The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Abigail with attitude: London and the EBA Rottweiler

Edward Gibbon wrote about the decline and fall of the Roman Empire and, for a few years now, I have been thinking about whether London can continue its dominance as an important financial centre. I am starting to think that we might be witnessing the decline and fall of the London empire. In a way, London is a city-state which bears little resemblance to the rest of the country. The European Banking Authority has become a Rottweiler and is insisting that, from next year, any banker who earns more than €500,000 will be affected by a EU-wide bonus cap. Such employees will have variable pay restricted to the same level as salary, or twice that level with explicit shareholder approval.

If implemented in full, this law would have two clear consequences. First, the compensation of London-based bankers would shrivel. Secondly, most investment bankers would want to work for non-European institutions and work outside Europe. Surely, New York, Hong Kong, Singapore and Dubai will all benefit at the expense of London. Of course, not all cities welcome the financial sector with open arms. A well-connected source recently told me that Singapore was becoming less keen on expanding its banking sector because the total assets of its financial services sector were ballooning as a percentage of overall GDP.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree