Banking giant, Barclays bank is planning to offer higher bonuses to senior executives at the investment bank even as the revenues fell during the year.

Chief executive Antony Jenkins and the board have approved a hike in bonuses even as the unit's revenues fell. The move might create tensions between the Bank of England and European regulators. Jenkins, the head of the Barclays bank has turned down the bonus offering from the bank for 2013 as the bank faced costs relating to the scandals.

The European Commission has ruled that banks cannot pay more than two times a banker's salary in bonuses. Bank of England governor Mark Carney has dismissed proposals to cap bankers' bonuses and described it as a crude measure that is expected to fail to meet its objectives. He said that the move will simply enable the banks to increase the basic salaries of its executives in order to retain talent. The remarks were made at a time when the Royal Bank of Scotland is planning to give senior staff bonuses worth twice their salaries.

Bankers in the leading financial hub of London are particularly concerned over the limits but experts believe most of them already have ways to circumvent the new legislations. Experts said that if there are restrictions on paying bonuses, the bankers will simply increase other allowances for the officials.