Brexit: Carney says bonus caps could be ditched

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Mark Carney says UK regulators could drop the banker bonus cap when it exits the EU.

The Bank of England governor told a conference on Wednesday there was also room to tweak Solvency II rules for insurers and to make capital requirements for smaller lenders are more proportionate, Reuters reports.

Carney says high standards must be kept in place because financial services could grow to 15 to 20 times GDP in the next couple of decades compared to 10 times now.

“There are areas where we would make changes, but within the context of maintaining overall levels of resilience,” Carney said.

The UK had been opposed to the EU caps on bonuses for the financial services sector arguing it would make banks less nimble and that the industry would just increase base pay.