Foreign banks in the City of London are stepping up tactics to mitigate the impact of impending EU bonus caps.

Bankers said US institutions were considering whether it still made sense to base Europe, Middle East and Africa (EMEA) business in London, suggesting that Dubai or another Gulf financial centre could benefit instead. “We are not thinking of transferring people from London to Dubai tomorrow,” said one US banker. “But future growth in Africa could be led out of the Middle East or South Africa.”

George Osborne, UK chancellor, has told officials he is most nervous about the impact of the EU rules on foreign banks pulling back from using London as a hub for their EMEA operations. UK banks, including HSBC and Standard Chartered, have played down that threat.