Dutch banks are to put an end to the excessive bonus culture in the sector. The code of conduct stipulates that bonuses must not exceed bankers' salaries.

In the future, bonuses will be paid out over a longer period, as a result the amount will be lowered if risky products have led to poorer results. The boards of commissioners are to supervise the new measures.

The excessive bonus culture is seen to be one of the causes of the worldwide financial crisis. Earlier this week, Finance Minister Wouter Bos threatened to intervene if the sector didn't put its house in order.

The code only applies to management and not to traders. Commercial banks do not have to adhere to the code as they operate abroad more often than ordinary banks.

In the public sector, Interior Minister Guusje ter Horst wants to introduce legislation to cap rewards for former aldermen. In the future, she hopes local politicians will only receive the equivalent of a year's salary, if they are forced out of office before their term ends. Their pensions and expenses will also be capped.