The Financial Services Authority will be visiting UK banks over the coming three months to check that their remuneration policies are not encouraging staff to pursue risky policies.

Following the announcement of yesterday’s £37bn government rescue package for three banks – RBS, Lloyds TSB and HBOS – the FSA wrote to all UK banks to urge them to “eliminate bad or poor practices concerning the measurement of performance, the composition of remuneration and government arrangements”.