BBA: Shareholders should set bankers' pay

Knight said it is not necessary for the government to cap pay or force banks to publish top remuneration deals.

"It is for the shareholders to make decisions; they are the owners," said Knight.

"Much of this looks nothing more or less than a witch-hunt. The real question is how well a business is being run.

"There is widespread concern now right across the business community that the way the UK is portraying itself and the way discussions are going are spreading out across different types of businesses, and somehow all being tarred by the same brush; this is bad."

Knight's comments come after members of David Cameron's business advisory group expressed concern at the political trend for "banker bashing" and bonus culture.

Earlier this week Cameron was forced to defend his business credibility to the group, which felt the government should have supported Royal Bank of Scotland Stephen Hester's entitlement to a bonus.

Knight said bonuses are not important given other challenges faced by the UK.

"We have to concentrate on performance and on the real issues, which are not about bonuses," she said.

"The real issues are that the economy is not yet growing as strongly as it is."