Poll reveals bonus gripes in Japan

TOKYO • An increasing number of bankers working at foreign firms in Japan are unhappy with their bonuses, and falling expectations for pay hikes are giving them more cause to gripe, according to a Morgan McKinley survey.

The poll shows 40 per cent were dissatisfied with their bonuses, up from 28 per cent last year. About 51 per cent received indication from their firms that their base salary will rise this year, a 5 percentage point drop.

Despite the gripes over pay, the bankers were optimistic on Japan's economic outlook. About 84 per cent were neutral, positive or very positive on the world's third-biggest economy over the next 12 months, compared with 63 per cent last year. Morgan McKinley based its survey on the responses of 257 employees at about 40 mainly foreign financial firms, which it did not identify.

BLOOMBERG

Debt guidelines for UK card issuers

LONDON • Credit card firms will have to do more to help struggling customers repay their debts, including the suspension of cards under proposals published by Britain's Financial Conduct Authority (FCA) yesterday.

The proposals follow a review by the FCA of Britain's credit card market where 3.3 million people are in persistent debt, meaning they have paid more in interest and charges than they have repaid of their borrowing.

Under the FCA's proposals, when a customer has been in persistent debt for 18 months, issuers will have to prompt them to make faster repayments if they can afford to do so. If a customer remains in persistent debt for another 18 months, the firms must propose a repayment plan.

Credit card issuers will also have to do more to identify struggling customers much earlier.

REUTERS