British Banks Pressured to Cut Bonus Pay Packages

Added by Gary Dunn on November 24, 2010

The British Bankers Association stated on Thursday that top UK banks are having continuous discussions with the government with regard to pay packages.

Governments from all around the world that have given banks state aid are pressuring these about not allocating huge amounts for bonus payments this year’s end.

Angela Knight, the chief executive of the British Bankers Association, a banking lobby group, stated that banks have a clear image about the state’s request and the social responsibilities they have.

“We have said repeatedly that the banks understand the public mood with respect to remuneration and the banks also understand their societal responsibilities. It is not surprising therefore that we are talking with the government on these and a range of other issues,” stated Angela Knight.

George Osborne, the British finance minister, stated at the beginning of this week that his position was to support an international effort that would regulate the disclosure of bonus payments made by banks.

The approach supported by Minister Osborne might cause tensions within Britain’s coalition government.

A report signed by The Times wrote that four banks, The Royal Bank of Scotland, HSBC, Barclays and Standard Chartered, talked about a pact that would be directed towards cutting bonus payments this year. However, none of the four banks commented on the issue.