Banks will have to reveal how they set pay and bonus packages according to the Financial Services Authority (FSA), which will be revealing a new code of conduct this week.

The FSA has reportedly decided it will scrutinise the way bankers are paid, but provided the overall remuneration policy is acceptable, it will not become concerned with individual staff payments. The amount going to shareholders will remain a matter individual companies and the Government.

The FSA launched a consultation in February into measures to minimise excessive risk taking in the financial sector. Its chief executive, Hector Sants, told the BBC the FSA would would decide which banks were distributing too much money to themselves and those who were still taking too much risk.

Speaking to the BBC, Sants said: "Our code will address those questions and make absolutely clear you cannot calculate bonuses in a way that encourages unreasonable risk-taking and puts the institutions at risk, which was the case in the past.

"One of the measures we will be announcing is a requirement for all UK banks to produce for us a clearly articulated pay policy and we will sign off on that."