LAUSR

ABSTRACT In the aftermath of the Global Financial Crisis (GFC), the regulatory tightening of bankers’ remuneration has become an essential part of the reform of banking regulation in global financial markets. With reference to these international principles and standards, China has also launched a regulation-guided reform to promote the modernisation of bankers’ remuneration. This article provides the first empirical analysis of the regulation and practice of bankers’ remuneration and incentives in China’s state-owned commercial banks (SOCBs). The empirical evidence shows that the regulation has not been effectively implemented. Instead, the traditional politicised and administrative approach, which prioritises political incentives over market-oriented remuneration, remains predominant.