The Research On Banks' Remuneration Disclosure

During the financial crisis, the irrational high remuneration of the bank directors had raised close attention from all sectors of the society. The regulatory bodies are also making efforts to improve the remuneration system. Banks, as the intermediate of the financial markets, should be more careful about their remuneration system, as it is not only the internal matter of the banks, but is also the key element to stabilize the capital market and maintain the credibility of the markets. In 2011, the Basel committee published the remuneration disclosure requirements for banks and other finance institution to improve the disclosure quality of compensation. The thesis aims at investigating the remuneration disclosure quality of banks in the Basel Committee from 27 different countries and regions and analyzes the underlying reasons for the difference in quality, and meanwhile provides practical suggestions to the improvement of China's remuneration disclosure quality.According to the data analysis, we find that remuneration disclosure qualities vary across different countries and regions. Among the 100 banks investigated, banks from Singapore and South Africa have the best disclosure quality, followed by banks from Europe and America. The disclosure quality of banks in China and Japan falls below the average level. Banks from the Southern America have the worst disclosure quality. Banks do a far better job in terms of qualitative disclosure than quantitative disclosure. The regression analysis reveals that capital adequacy ratios have significant impact on the remuneration disclosure quality. The difference of quality of disclosure has close linkage with the remuneration system of the countries. Up till now, there are still gaps between the practice of the countries and the requirements of the Basel Committee, but we could foresee that in the near future, the remuneration systems will be improved and the finance markets will be more stable.