The incentives used by financial institutions and markets are directed too much towards short-term private gains, and too little towards long-term stability and the public interest, prime minister Jan Peter Balkenende and finance minister Wouter Bos say in a letter to European newspapers on Monday.

‘Bankers need to take responsibility in changing risk and reward systems and governments and supervisors need to help and – if necessary – force them to make this change,’ the ministers said.
They also argue for strengthening the international supervision for financial institutions. ‘Europe must now accelerate progress towards an integrated European system of prudential supervision and crisis management,’ the letter, published in English by the NRC, said.
For the full text on nrc.nl/international, click here