The European Banking Authority said most banks have broken rules that restrict bonuses to 200 per cent of a banker’s salary.
Last week, European regulators said the banks’ use of role-based allowances, a move approved by the Bank of England on the basis that they were part of a fixed salary, was not justifiable. UK banks had argued that the cap places banks at a disadvantage to US and Asian companies, as these are linked to a banker’s role, not to the institution’s financial performance, but can be withheld by the bank.