Policymakers from across Europe are holding a meeting today (19 February) that may result in a cap being imposed on bankers' bonuses.
European Parliament (EP) members will hold further discussions with officials from the 27 member states of the European Union in an attempt to strike an agreement over the Basel III regulations following unsuccessful talks last week, Reuters reports.
These new rules were drawn up following a collaborative effort between regulators from across the world in an attempt to improve the stability of the banking industry and ensure lenders do not collapse when faced with crises in the future.
However, before Basel III can be implemented, a deal must be agreed to limit bonuses awarded to professionals in the financial industry to no more than their annual salaries.
Although this is not a clause listed in the regulations, the EP is insistent that such a measure is crucial to enhance conditions in the banking sector.
By Asim Shah