Standard Chartered pulls out of UK bonus pact

company states that 90 per cent of its profits come from outside the UK so will not treat its UK sta

UK-based bank Standard Chartered said that it would not join any pact to restrain UK bonuses for 2010.

The chief executives of all other major UK banks including Barclays and Royal Bank of Scotland are said to be close to an agreement with authorities in negotiations to reduce bonuses.

Standard Chartered referred to the fact that 97 per cent of its staff are positioned overseas and 90 per cent of its profits came from outside UK while saying that it was not willing to treat its UK staff differently.

Media reports said that Britain's biggest retail banks are close to a deal by which they would commit up to £1.5bn to a 'big society bank' in return for the government staying clear of tough bonus rules.

Earlier, the London Times had reported without attribution that Barclays, HSBC Holdings, Royal Bank of Scotland Group and Standard Chartered are in talks regarding a possible agreement to cut bonus payments and increase small business lending. The banks aim to issue a joint statement ahead of Christmas, the newspaper had said.