Chancellor George Osborne had hinted in an earlier interview that the UK may be unwilling to act unilaterally on limiting performance-related windfalls, but Mr Cable insisted that financial firms had acted recklessly in the run-up to the recession.
"Transparency is key to creating confidence in any commitmentâfromâourâbanks to behave more responsibly," he said in a statement. "Outrageous and irresponsible pay structures were a driver in our financial crisis."
The Liberal Democrat minister is believed to be in favour of imposing tougher restrictions and penalties on banks to prevent a repeat of the 2008 crisis and there have been long-standing rumours of a rift between him and Mr Osborne.
Last week, it was reported that HSBC was poised to double the salaries of some of its top investment bankers in an attempt to avoid the imminent introduction of rules on bonuses.
By Gary Cooper