Pay of bankers may need to be regulated – BoE Governor Mark Carney
Developed economies have brought in a series of reforms to financial sector bonuses in recent years, bringing in laws to defer when they are paid and the ability to take them back in the event of banker misconduct or excessive risk taking.
In response, many banks are reported to have raised the fixed level of pay awarded to their staff.
"This will help re-build trust in financial institutions," he added.
His comments came less than a week after five banks in different countries were fined a total of $4.3 billion for failing to prevent traders from trying to rig the foreign exchange market, the latest in a series of scandals since the 2007-2009 financial crisis.
Dudley said last month that deferred pay for senior bankers should be in the form of debt, rather than shares, and that these "performance bonds" would be forfeited to pay some of the fines imposed on a lender for wrongdoing, easing the burden on shareholders.
"We think that leaders and senior managers must be personally responsible for setting the cultural norms of their institutions," Carney said.
He said this rule has an undesirable side effect of limiting the size of bonus "claw-backs".
"European rules create a situation that makes the case for additional reforms to ensure that the burden of excessive risk taking and misconduct by staff can still be borne by those staff," he said.