Europe Needs to Compete for Young Bankers

Europe should let the good times roll.

Investment banking revenue has soared in recent quarters. So much so that regulators at the European Central Bank will be hard pressed to justify the limits on compensation they’ve had in place since 2020, when the pandemic was at its height. Indeed, the recent rises in junior pay across U.S. investment banks are a clear signal the finance job market is heating up. Keeping the lid on the bonus pot will be the toughest struggle for EU-regulated banks in their competition with a buoyant Wall Street. The ECB needs to become more practical — and commercial — in its zeal to protect the economy.