Canadian Finance Minister Jim Flaherty signaled that he did not back European efforts to set tight new rules on bankers' pay.

Speaking ahead of a meeting of G-20 finance ministers in London on Friday, he said Canada's rules already worked against pay structures that encourage risk and that the G-20 should stick to its previous position of letting the Financial Stability Board study the issue and draw up recommendations.

Flaherty said it was "not likely" that Canada would follow France's push for an international agreement on capping bankers' pay.

"I don't think it's necessary for Canada to do that, so I think the answer is it's not likely," he said.

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