European banks are being forced to raise staff salaries to make up for lower cash bonuses as new rules put the region's banks at a global disadvantage to attract staff, according to consultants at Mercer.

In a survey tracking pay practices at 64 financial services firms, Mercer found that the different approach by European, US and Asian regulators since the financial crisis "is creating an unlevel competitive playing field and means that the original intent of some reforms is not being met," said Vicki Elliott, senior partner in Mercer's global financial services human capital consulting team.