53http://www.assuredrecruit.comKohanaPHPUK banking 'significantly more stable'. The Bank of England says the banking sector is in much better shape than six months ago - but could have saved £66bn by cutting pay and dividends in the boom years. The Bank's latest Financial Stability Report said a 20 per cent cut in "discretionary distributions" between 2000 and 2008 would have raised an extra £75bn, more than the amount pumped in by taxpayers during the financial crisis. The report said banks were paying out almost a third of their revenues in staff costs and 46 per cent in dividends between 2001 and 2006. The Bank also suggested a 10 per cent per cent cut in banker's pay and a one-third reduction in dividends could raise £70 billion over the next five years. The comments are likely to add to the debate about banking pay following the Government's one off tax on bonuses announced in last week's Pre-Budget Report. The report said "relatively modest limitations in the distribution of profits" would help banks meet capital requirements without shrinking their balance sheets. The Bank also warned the UK banking industry remains exposed to several risks, even though the financial system has become "significantly more stable" during the past six months. The report warned of a "hard to gauge" impact from the withdrawal of state support measures like the credit guarantee scheme.http://mvc.digipigeon.com/en-gb2009-12-21 12:00:00