Bank of England financial policy committee member Michael Cohrs has suggested extending the period over which bankers’ bonuses vest to between seven and 10 years to ensure payouts are timed to match a typical business cycle.

Cohrs was speaking yesterday during an evidence session on the topic of regulatory approach held by a panel of the UK's Parliamentary Commission on Banking Standards. The former Deutsche Bank executive was asked by the panel's lead member Lord Lawson of Blaby - the former UK Chancellor - to elaborate on comments he made in a speech earlier this year suggesting banks have started changing incentive systems, which will help bring about a change in culture.