The UK subsidiaries and branches of major overseas banks have agreed to support the implementation of reforms to bank pay agreed by the G20 in Pittsburgh, the UK government announced.

Bank of America, Merrill Lynch, Citigroup, Credit Suisse, Goldman Sachs International, JP Morgan Securities, Morgan Stanley, Nomura and UBS have all confirmed their commitment to the financial regulator’s rule and supporting code on remuneration practices, which was published in August and comes into force on 1 January 2010, and their full support for the G20 agreement, which sets global standards for the implementation of the Financial Stability Board’s remuneration principles.

In the aftermath of the credit crunch, policymakers have examined how to strengthen the financial system and overhaul rules governing how banks and other institutions operate. There remains debate on the subject, however, as previous regulations, such as the Basel II capital adequacy rules, have come in for criticism for making problems worse.

The joint statement from the banks was issued via the UK's Treasury department. 

EU banks with London branches including BNP Paribas, Deutsche Bank and Société Générale confirmed that they will implement the G20 agreement in accordance with their home regulator and would seek to voluntarily comply with the FSA Rule on remuneration for their UK-based employees, the statement said.

"We welcome the global nature of the G20 remuneration reforms and will work with the FSA and regulators in our home countries in adopting the reforms, recognising that all G20 nations have also committed to their implementation to ensure a level playing field," the banks said.