EU agrees to cap bank bonuses, lift capital requirements
The European Union is expected to adopt new measures which would cap the majority of bankers. 
These new measures form part of the EU legislation increasing the level of core capital banks must hold on their balance sheets. The package has also increased the amount of capital that banks need to hold, as well as a leverage ratio to limit excessive build-up of borrowing on banks’ balance sheets. It introduces capital buffers on top of the minimum capital requirements.
Irish finance Minister Michael Noonan, who brokered the deal, said "this overhaul of EU banking rules will make sure that banks in the future have enough capital, both in terms of quality and quantity, to withstand shocks. This will ensure that taxpayers across Europe are protected into the future."
However, a few hours after MEPs had agreed the deal, Prime Minister David Cameron’s spokesperson said on Thursday (28 February) that EU rules should allow flexibility at national level, stating that Britain “has some of the toughest remuneration requirements in the world”
Austrian conservative MEP, Othmar Karas confirmed that the bonus rules would apply to all bank employees of European banks whether they are based in or outside the EU. Karas, who led the European Parliament's negotiating team on the package, stated that "for the first time in the history of EU financial market regulation, we will cap bankers' bonuses."
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