New Dutch banking code to take effect Jan. 1

Dutch banks will be restricted as to what they can pay staff and be required to get regular approval of risk strategies under a new voluntary code of self-regulation being introduced on January 1.

The bank code follows a critical report in April on the future of the local banking system. It was spurred by the collapse or near-collapse of a number of Dutch banks during the worst of the credit crisis last October. The code also comes amid a growing worldwide crackdown on bank bonuses and conduct. A standard for capping bank bonuses is expected to be on the agenda for the Group of 20 economies when they meet later this month.