Foreign news: OCBC to rejig China banking segment, pay cut for China bank execs, recovery plans set

Overseas-Chinese Banking Corp plans to remodel its unprofitable China consumer banking unit and focus more on corporate banking, to help boost profit. Bloomberg reports the bank will add new customer segments and products, requiring more staff training in the next six to eight months. According to the bank's annual report, the consumer-banking segment posted an operating loss of 175.8 million yuan.
Top executives at China's state-owned banks received annual salaries of 1.2 million yuan, a pay rate slightly higher than the previous year, the South China Morning Post reports. The high earnings are likely to end this year, with a cap on remuneration for state-owned enterprise executives taking effect in January. The central government have announced a cap of 600,000 yuan in annual remuneration for top executives at state-owned enterprises, a decrease of 40 per cent in pay.
The European Banking Authority published its final guidelines yesterday setting out requirements for institutions across the EU to follow when developing recovery plans. The guideline provides the minimum list of qualitative and quantitative indicators that institutions should include in their recovery plans to identify the points at which appropriate recovery measures should be considered. The guidelines take effect on 31 July 2015.