Deputy BoE governor warns he will take more action on bankers' bonuses

The man in charge of regulating banks has warned he will take more action on bonuses.

Andrew Bailey, deputy governor of the Bank of England and Chief Executive of the Prudential Regulation Authority, says he is sympathetic to making bankers wait between five and seven years for bonuses, double the current practice at banks like RBS and Barclays, to make sure that the money could be clawed back if it transpired a banker had made bad decisions.

Speaking exclusively to ITV News, Mr Bailey said he wanted bankers to have "skin in the game".

In unusually forthright language, he went on to make clear that he is alert to attempts by bankers to dodge regulation.

He added:

Mr Bailey's comments are a shot across the bow of banks which have drawn criticism in recent weeks for the level of bonuses they have awarded.

He praises progress made so far but is clear that they need to go a lot further and that the regulator will push them if necessary.

It's clear that he thinks pay, ethics and attitudes towards responsibility must change.