The Taoiseach has described Government-imposed caps on bankers’ pay as a “constraint”.

Enda Kenny’s comments come just days after AIB CEO David Duffy announced he was leaving his role at the lender to head Glasgow-based Clydesdale Bank.

In an interview with Bloomberg TV in Davos today, Mr Kenny said wage caps were “a constraint and obviously coming from where we’ve come from, that’s been a difficulty.

“David Duffy proved his mettle,” he said.

However Mr Kenny declined to say if the Government would look to ease the cap as it sought a new CEO for AIB.

In 2013 Mr Duffy’s total remuneration was €489,000 – just below the cap of €500,000 for banks majority owned by the State.

His predecessor at Clydesdale Bank – David Thorburn – was paid around £1m in the year to September, according to that bank’s annual report.

Last year Minister for Finance Michael Noonan ruled out paying bonuses at AIB until performance improved and the issue of bankers’ pay has been a controversial one ever since the sector’s bailout.

During his interview Mr Kenny also said he supported the Department of Finance’s opposition to the Central Bank’s proposal to raise deposit requirements for borrowers, saying he did not want future home loans to be restricted to “wealthy people and the children of wealthy people”.

The Central Bank is expected to publish updated proposals on the issue early next week.