Banking bonus limits 'could stop job creation in the UK'

Banks will be paying out billions of pounds in bonuses this year, despite the government's calls to curb the payments, the BBC has learned.

Banks have begun re-balancing pay packages following new Europe-wide rules on bonuses agreed last summer and confirmed last month.

These include introducing independent remuneration committees and setting maximum levels of bonus payments as a percentage of basic salary.

Dr Peter Hahn, from Cass Business School, said job creation in the UK's financial sector could suffer if government legislation limited bonus payments.