MAINZ, Germany (Reuters) - German financial watchdog Bafin has criticised deficiencies in bank efforts to apply rules on bonuses designed to curb the incentives that contributed to the financial crisis.
Bafin's view could turn up the pressure on banks working to implement the new rules, which say bankers in Europe could be barred from getting bonuses bigger than their base salaries as soon as next year.
Matthias Jaeger, Bafin banking supervisor, told an industry conference "severe deficits" exist in banks' efforts to implement the rules, though he acknowledged pay structures at all banks had become more sensible and sustainable.
"However, they have not yet reached the last third of the way; there is still a lot to do," he said.
His comments come as European and U.S. banks are still struggling to cast off a variety of misdeeds revealed after the financial crisis and a tide of fines and lawsuits shows no sign of abating.
Bafin is close to completing its review of progress by large German lenders in implementing the bonus rules, which also stipulate that the bonus cap can be increased to a maximum of twice base pay only if shareholders vote in favour.
Germany's biggest lender Deutsche Bank