Andrea Enria, chairman of the European Banking Authority (EBA), said the watchdog will publish a report by year-end on whether the 28-country bloc's national regulators comply with the EBA's view on what type of allowances are acceptable.

"Our conclusions have been followed up," Enria told Reuters on the sidelines of a British Bankers' Association conference.

Under an EU cap banks cannot pay bonuses more than the fixed salary, or twice that amount with shareholder approval, but banks have topped up basic pay by awarding allowances. The EBA has said that allowance should be classed as part of the bonus.

The EBA said last October most of the so-called role-based allowances - regular payments to top up a banker's basic pay - breach EU bonus cap rules.

Enria said regulators were complying in all EU countries, including Britain, where most of the allowances had been paid.

"We are happy with what we are seeing," Enria said.

Banks have been forced to change their remuneration contracts to ensure they comply with the EBA guidance.

(Reporting by Huw Jones; Editing by Steve Slater)