The European Banking Authority said in a March 30 report onremuneration practices that the bonus cap introduced in 2014 did not have anysignificant impact on lenders' financial stability and cost flexibility.

For most companies, the fixed remuneration of identifiedstaff accounted for less than 1% of their own funds, and on average itaccounted for only 3.12% of their administrative costs. The EBA added that thesmall increase in the fixed salary for identified staff was immaterial in thecontext of banks' administrative costs.

The report noted that as a result of the introduction of thebonus cap, the average ratio between the variable and fixed salary paid toidentified staff fell to 65.48% in 2014 from 104.27% in 2013. For high earners,that same ratio fell to 127% in 2014 from 317% a year earlier.

The EBA added that banks' remuneration practices —particularly in relation to deferral and pay-out in instruments — were notsufficiently harmonized across the EU yet because of differences in howindividual countries implemented the new rules.