The Banking Commission has recommended a new pay code that could see bonuses deferred for 10 years and powers to cancel outstanding financial awards in the case of a taxpayer bailout.
However, the commission called a bonus cap "crude" and unworkable.
Chairman Andrew Tyrie said: "Recent scandals, not least the fixing of the Libor rate that prompted Parliament to establish this Commission, have exposed shocking and widespread malpractice.
"Taxpayers and customers have lost out. The economy has suffered. The reputation of the financial sector has been gravely damaged. Trust in banking has fallen to a new low".
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The PM told leaders that EU citizens living in Britain for more than five years would be granted the same rights as full British citizens.
Outbreaks of rain across northwestern parts of the UK will move slowly southwards.
The credentials of tens of thousands of government officials, parliamentary staff and police officers are reportedly being traded online.