Bank of England says it never supported banker bonus cap, amid calls to scrap it

The Bank of England (BOE) never supported a cap on bankers’ bonuses and thinks there are more effective ways to ensure banks account properly for risks, a spokesperson for the central bank said on Thursday.

The comments from the BOE came after media reports, confirmed by Reuters, that British finance minister Kwasi Kwarteng is seeking to scrap the limit on bonuses in order to boost Britain’s competitiveness.

“The Senior Managers Regime, the remuneration rules on deferral, clawback and malus are more effective tools for ensuring bankers take proper account of risks,” a spokesperson for the BOE said.