To achieve better results give larger bonuses. Great bonuses motivate taking greater risks. By taking greater risks to achieve better results. To achieve better results give larger bonuses ...
Each of these steps separately is logical. In its entirety, they create a vicious circle which over time becomes a vicious and. Increasingly vicious. Moreover, according to many experts, this is one of the main reasons for the current crisis is at the heart of another vicious circle. Taking risks creating more problems for banks. The problems of banks led by rescue plans with taxpayer's money. Rescue plans remain a sense of impunity and lead to taking more risks. Taking ... and know their way.
Under the pressure of public anger at everything that happened in the financial sector worldwide to consider measures by which to destroy the vicious circles. This is happening at European level with changes in the CRD (Capital Requirements Directive III - CRD3). A more stringent rules from Brussels will soon likely to affect and bankers in Sofia. Conditions for receiving bonuses of them will be recorded in the Credit Institutions Act and special regulations of the BNB. Law changes are ready, and the ordinance to be prepared, said a source from the high level of anonymity. The new requirements should take effect from early 2011 in the ordinance that the BNB will prepare will include specific details of the directive, which is still at the stage of discussion in European institutions. In the Committee on Economic and Monetary Affairs of the European Parliament deputies adopted the basic requirements for the remuneration policy. It is their coordination between the Commission, the European Council and Parliament. In July will be voted by Parliament.
Between recommendation and obligation
We have sent instructions to the Bulgarian National Bank on banks for implementation of the guiding principles of the remuneration policy. They are recommendatory in nature, since the new rules have not yet adopted the directive, the central bank explained. These are instructions for linking the remuneration of bankers with the risks and lasting results for a medium period of time. They were prepared by the Committee of European Banking Supervisors (Committee of European Banking Supervisors - CEBS, which is a member of and BNB) are adopted April 20, 2009 and apply to all EU countries. Last year, National Bank has made a recommendation to the banks begin to reset their remuneration policies to meet the requirements of the Directive when it comes into force, designated by the governor. Apply, while respecting the principle of proportionality (the size of each bank). According to the guidelines of the Committee determines the remuneration policy and requires maintenance of an appropriate proportion between the basic and further reward explained more of the central bank, did not specify what is meant by "appropriate proportion". Changes in the Directive to provide the bonuses are at most 50% of total wages (see box).
Local bankers explained that the current guidance relates specifically to the floating part of the remuneration. Te has already been implemented in some banks, part of large European groups. The scheme is in receipt of deferred bonus payment linking him with a longer period - this year as part of receiving the bonus and the remainder in the next two years, provided that the targets. The idea is to no longer be exercised so shortsighted as until recently, and have longer-term vision, the bankers explained.
Representatives of the state sector that is big bonus as one reason for the credit boom in the 2004-2008 course, bonuses are comparable to their dimensions in major European countries.
Between bonuses and risk
In an official release of the Committee on Economic and Monetary Affairs of the European Parliament of 15 June 2010 said that new rules put an end to the culture of risk-taking by bankers. According to them, the directors of banks that received public assistance will not receive bonuses while those institutions do not return the funds received as support, bankers' bonuses should not exceed 50% of total salary and bonus payments to themselves will be postponed until they are achieved deliverables, and not only be based on estimates. Vote on these rules by the European Parliament is going to happen next month.
The new rules are constructed so as to ensure stable and fair remuneration system that encourages long-term stability rather than taking excessive risk, the report says. It is receiving huge bonuses in Europe and the USA is considered as the main factor that motivated bankers to achieve better results by taking increasingly larger and larger risks. Changes to the directive intended to put an end to unhealthy policy bonuses to increase transparency and capital requirements in areas where speculative activities are distributed in writing to the Commission.
Between Prohibition and its circumvention
According to the industry in our country "is not very clear how to articulate new rules on fees. The motive is that when a regulation will always find a way to circumvent her as the manager of a subsidiary bank here or in Romania or Poland could go to the headquarters of the parent bank and thus to obtain the bonus. The local governor, you can not trace it, bankers indicated. Local banks usually do part of the economic groups and serve the business interests of its principal shareholders. Thus bonus may be received from other companies - for consulting, participation in boards, etc.
The new rules will have to pay more effect on the banks of the largest markets, ie. market-maker, who traded the capital markets speculate take big risks, get big bonuses. In our country there is no such type of banking market is not of such scale and developed traditional banks commercial banking, indicating the sector. Therefore, before proceeding to the purely mechanical constraints of dubious effect, should be carefully consider. And now there are very strict requirements how much risk banks can take the money of their clients, but any new restriction usually figure out how to be circumvented. The only counter to this is transparency. A crucial problem is that banks take a big risk and big bonuses handed out and no one knows exactly how big they are. Maybe you should consider regulations that is in the direction of full disclosure both underwriting and managers' bonuses. Thus, the central bank will be able to monitor and prevent excessive risk assessment but who to entrust their money to remain customers. Surely many people will choose a bank that does not distribute large bonuses, but will remain a business and those who pay generously for experts who know how to take justifiable risks and win. Question of the market.
петък, 25 юни 2010 г.
the hospitals
One of the basic rules of change management is "explain". Everything at every stage of the process to all parties concerned. And make double-sided conversation. The only more important than that is sure to change in steps.
Well, the new Health Minister Professor Anna-Maria Borissova managed to break both rules at once. And throw in a panic not only heads of state hospitals, but few private investors in this sector.
Two letters
Soon after Borisova said in an interview that in Bulgaria must remain only 130 hospitals (also absolutely adequate to the size and population number), from her office sent a questionnaire to hospitals with which they must samokategorizirat and do not cover certain criteria, will be closed. The strange thing here is the choice of criteria, comment from industry, even more strange is that the letter was released and clinics that do not work with the health insurance scheme is not financed with public funds and to fight its competitors rely solely on the quality of their service.
And since none of the health ministry has not bothered to explain why it wants this information - only a statement of national health insurance card or you will be used as an argument to close the clinic or wards, hospital directors in the last week of any heated phones health institutions with a request for comment.
Against this background, they received a second letter. This time the request of national consultants (professors or associate professors who set the standards for the treatment of certain diseases and consult the health ministry and health fund) emergency clinics to obtain information about doctors, the number of operations, patients and equipment and in general all of the commercial information hospital. The important detail here is that these represented national consultants and doctors in hospitals. So in practice, most hospitals in the country are forced to share information which should be company secrets with competitors.
All these lead to three paradoxes
Paradox number one
Until now, most industry fair assumption is that if you do not quite meet the requirements at issue, the hospital will be allowed to work with the Health Insurance Fund. Strangely, however, why such letters are received and hospitals, which are entirely private and not work with the NHIF.
In the private Gynecological Hospital Aesculapius 97 in Rousse as all births are paid by the patient number and it will contract with cash. According to the categorization, however, it must have 300 births to continue working. However, the hospital has fewer than 300 births in 2009
"Fears of colleagues from private hospitals, that information may be used to see where they are most vulnerable to small hospitals and to put such requirements and criteria to automatically close them. The request for a certain number of births as a untenable, particularly in crisis and where labor is paid - you should have just 300 or 500, "says Dr. Alexander Rudnitski, manager of Aesculapius 97. According to him the requirements of new standards in obstetrics and gynecology, which are also enshrined in avtokategorizatsiyata "are so high that only five out of 10 district hospitals will have the necessary specialists and equipment to enable them to work.
Paradox No. 2
In the new requirements of the Ministry are set pieces for more specialists in the clinics. And despite three facts which Prof. Borisova could not know. The first - that in recent years had several years of zero specialization of doctors. Moreover, rare specialties such as anesthesiology, is granted annually 10 units of specialization. And last but not least - every day a doctor leaves Bulgaria.
"These are criteria that can respond immediately only five or six most prestigious hospitals. To achieve them, other hospitals have to offer higher wages. This in turn can not do because the health fund payments delayed," said Prof . Vladislav Ivanov, director of the General Hospital in Smolyan.
Ministry of Health responded that the information will underpin development in the updated national health card. It will present the real picture in every area on 19 different criteria - population in the area, incidence, specific nuisances, professionals, equipment, beds and more. Based on this we'll lay down the guidelines for restructuring the hospital system. "This is not about closing hospitals, and for the inventory of the entire health system. We all know that there are now hospitals for active treatment, which not long function and patients do not attend. A hospital is not just building a content . This requires a sufficient number of qualified specialists, modern equipment, daily practice, "stated the health ministry.
According to Prof. Krassimir Ivanov, director of University Hospital "St. Marina" Varna, requests for categorization are not dressed in law and this is not a document which to derive some consequences. "Rather, accept it as a pre-drilling looks at how health system," he says. Professor Ivanov from Smolyan, however, is of the opinion that instead of writing different criteria should require hospitals to categorize the ISO for medical services and not have self.
Paradox # 3
National consultants are doctors, usually professors, who work in large university clinics. So they sent a letter requesting specific information to make hospital directors hospitals to provide information to familiar with their business competitor, which in turn can write a standard to which its competitors do not comply.
The role of national consultants to participate actively in the development of medical standards and to observe compliance. Hospitals do not share standards of state, municipal and private, but are equally valid for all, as the Ministry of Health regulations concerning the operation of all hospitals, health department explained. In the area hard to comment on what steps are the first team of the ministry.
The opinion of most doctors is that what is the criteria that hospitals are not only the Ministry but that the industry should participate in their determination. Then you have to deal with the necessary doctors - specialists in rare specialties. "It should be thought about not managing to state hospitals and to the owner who is not law anywhere in the world, but to make competition for professional management of the largest and most hospitals," said Andrei Markov, director of Private Health Fund .
If these steps do not explain, however, the silence of the institutions will become doctors in opposition to everything that happens. Even if it is good.
Well, the new Health Minister Professor Anna-Maria Borissova managed to break both rules at once. And throw in a panic not only heads of state hospitals, but few private investors in this sector.
Two letters
Soon after Borisova said in an interview that in Bulgaria must remain only 130 hospitals (also absolutely adequate to the size and population number), from her office sent a questionnaire to hospitals with which they must samokategorizirat and do not cover certain criteria, will be closed. The strange thing here is the choice of criteria, comment from industry, even more strange is that the letter was released and clinics that do not work with the health insurance scheme is not financed with public funds and to fight its competitors rely solely on the quality of their service.
And since none of the health ministry has not bothered to explain why it wants this information - only a statement of national health insurance card or you will be used as an argument to close the clinic or wards, hospital directors in the last week of any heated phones health institutions with a request for comment.
Against this background, they received a second letter. This time the request of national consultants (professors or associate professors who set the standards for the treatment of certain diseases and consult the health ministry and health fund) emergency clinics to obtain information about doctors, the number of operations, patients and equipment and in general all of the commercial information hospital. The important detail here is that these represented national consultants and doctors in hospitals. So in practice, most hospitals in the country are forced to share information which should be company secrets with competitors.
All these lead to three paradoxes
Paradox number one
Until now, most industry fair assumption is that if you do not quite meet the requirements at issue, the hospital will be allowed to work with the Health Insurance Fund. Strangely, however, why such letters are received and hospitals, which are entirely private and not work with the NHIF.
In the private Gynecological Hospital Aesculapius 97 in Rousse as all births are paid by the patient number and it will contract with cash. According to the categorization, however, it must have 300 births to continue working. However, the hospital has fewer than 300 births in 2009
"Fears of colleagues from private hospitals, that information may be used to see where they are most vulnerable to small hospitals and to put such requirements and criteria to automatically close them. The request for a certain number of births as a untenable, particularly in crisis and where labor is paid - you should have just 300 or 500, "says Dr. Alexander Rudnitski, manager of Aesculapius 97. According to him the requirements of new standards in obstetrics and gynecology, which are also enshrined in avtokategorizatsiyata "are so high that only five out of 10 district hospitals will have the necessary specialists and equipment to enable them to work.
Paradox No. 2
In the new requirements of the Ministry are set pieces for more specialists in the clinics. And despite three facts which Prof. Borisova could not know. The first - that in recent years had several years of zero specialization of doctors. Moreover, rare specialties such as anesthesiology, is granted annually 10 units of specialization. And last but not least - every day a doctor leaves Bulgaria.
"These are criteria that can respond immediately only five or six most prestigious hospitals. To achieve them, other hospitals have to offer higher wages. This in turn can not do because the health fund payments delayed," said Prof . Vladislav Ivanov, director of the General Hospital in Smolyan.
Ministry of Health responded that the information will underpin development in the updated national health card. It will present the real picture in every area on 19 different criteria - population in the area, incidence, specific nuisances, professionals, equipment, beds and more. Based on this we'll lay down the guidelines for restructuring the hospital system. "This is not about closing hospitals, and for the inventory of the entire health system. We all know that there are now hospitals for active treatment, which not long function and patients do not attend. A hospital is not just building a content . This requires a sufficient number of qualified specialists, modern equipment, daily practice, "stated the health ministry.
According to Prof. Krassimir Ivanov, director of University Hospital "St. Marina" Varna, requests for categorization are not dressed in law and this is not a document which to derive some consequences. "Rather, accept it as a pre-drilling looks at how health system," he says. Professor Ivanov from Smolyan, however, is of the opinion that instead of writing different criteria should require hospitals to categorize the ISO for medical services and not have self.
Paradox # 3
National consultants are doctors, usually professors, who work in large university clinics. So they sent a letter requesting specific information to make hospital directors hospitals to provide information to familiar with their business competitor, which in turn can write a standard to which its competitors do not comply.
The role of national consultants to participate actively in the development of medical standards and to observe compliance. Hospitals do not share standards of state, municipal and private, but are equally valid for all, as the Ministry of Health regulations concerning the operation of all hospitals, health department explained. In the area hard to comment on what steps are the first team of the ministry.
The opinion of most doctors is that what is the criteria that hospitals are not only the Ministry but that the industry should participate in their determination. Then you have to deal with the necessary doctors - specialists in rare specialties. "It should be thought about not managing to state hospitals and to the owner who is not law anywhere in the world, but to make competition for professional management of the largest and most hospitals," said Andrei Markov, director of Private Health Fund .
If these steps do not explain, however, the silence of the institutions will become doctors in opposition to everything that happens. Even if it is good.
Абонамент за:
Публикации (Atom)