Deputy governor of the Bank of England Andrew Bailey told ITV News the point of having regulation on pay is to make bankers understand a bonus could be "taken back".
He said: "For me it's about...making bankers understand that their remuneration is not riskless, in the sense that, once it's deferred, it can be taken back."
Deputy governor of the Bank of England Andrew Bailey told ITV News that bankers' bonuses should probably be delayed between five and seven years instead of the three-year deferral currently in place.
The Parliamentary Commission on Banking Standards previously suggested up to a 10-year bonus delay but Mr Bailey told Economics Editor Richard Edgar that retirement had to be taken into account.
He said: "You've got to balance that against, what might be a rather common sense argument, about what is the expected length of people's working lives.
"I'm not in the business of deferring for a long time into retirement."
Deputy governor of the Bank of England Andrew Bailey has told ITV News that the three-year deferral of bankers' bonuses should be increased but played down suggestions of a decade-long delay.
The Parliamentary Commission on Banking Standards previously suggested up to a 10-year bonus delay but Mr Bailey suggested the time limit implemented should "probably be somewhere in between" three years and a decade.
He told ITV News Economics Editor Richard Edgar: "The reason deferral matters, to coin a phrase, is that it creates skin in the game.
"The skin in the game is that the deferred but unpaid money can be taken back and a lot more of that taking back goes on now than took place in the past, so when problems subsequently emerge which cause costs to banks and their customers that deferred remuneration can be hit and it is.
"But I would like to see deferral increased."
Newly releases photos from the Bank of England's archive show how the bullion vault was converted into a staff canteen during World War 2.
Governor of the Bank of England Mark Carney has warned that there is a "distinct possibility" that the Royal Bank of Scotland would have to move outside of Scotland in the event of a vote for independence.
Speaking to MPs on the Treasury select committee, Mr Carney said European laws require banks to have their head offices in the same member state as their registered offices. Asked if RBS would have to move to the remaining UK if voters backed independence, he said:
It's a distinct possibility but I shouldn't prejudge it.
It depends on their arrangements as well, if they were to adjust more into Scotland the minor management of the institution.
Bank of England governor Mark Carney will today face a grilling by MPs over claims that some of its officials knew about the alleged practice of foreign exchange rate-fixing.
Mr Carney is due to appear before the Treasury Select Committee just days after the Bank suspended an employee over compliance concerns following an internal probe.
Governor of the Bank of England Mark Carney will meet with the Treasury Select Committee to answer questions on the "economics of currency unions" amid debate over the possible implications of a Scottish vote for independence.
Chancellor George Osborne has already ruled out a currency union between an independent Scotland and the rest of the UK.
First Minister Alex Salmond's Scottish Government wants to create a "sterling zone" with the rest of the UK if there is a Yes vote in the break-away referendum.
Mr Carney said in a speech in January that an effective currency union would force a newly-independent Scotland to hand over some national sovereignty in a similar way to how this is done in the eurozone.
"Any arrangement to retain sterling in an independent Scotland would need to be negotiated between the Westminster and Scottish parliaments," he said. "The Bank of England would implement whatever monetary arrangements were put in place."
The Governor of the Bank of England has told ITV News the economic recovery remains too fragile to raise rates yet.
Mark Carney's comments come as the Bank today abandoned its flagship forward guidance policy linking interest rates to unemployment after just six months - but insisted they must remain low for longer to support the economy: