Stephen Hester, the chief executive of Royal Bank of Scotland, will not take his bonus for 2012.
The bank boss made the announcement in the aftermath of the meltdown of the RBS computer system, which prevented customers from withdrawing money from their accounts.
His decision also came after RBS was implicated in the rate-rigging scandal.
RBS lost around £3.8bn of its value on Thursday after it was named in lawsuits against several banks accused of using false interest rates on loans between other financial institutions.
The Edinburgh-based bank, which is effectively owned by the taxpayer, said it had reached an agreement with the Financial Services Authority regulator on an approach to the scandal.
Barclays was fined a total of £290m by regulators over its attempt to manipulate Libor (London Interbank Offered Rate) and Euribor interbank lending rates.
A spokeswoman for RBS said on Friday: "RBS has reached agreement with the FSA on an approach to the issues surrounding interest rate swap products for SMEs . We believe that an independent review process will help to bring the clarity and certainty that customers and other stakeholders need. In the case of a small number of less sophisticated customers who entered into more complex swap products we have agreed to move directly to redress.
"We believe risk management products are an essential part of corporate banking and it is important we restore customer trust in this area. We are committed to the fair and timely treatment of our customers and will work closely with the FSA to achieve that end."
Chancellor George Osborne said that Barclays was one of many involved in the scandal and that the Serious Fraud Office was investigating others, including RBS.
Sandy Chen, banking analyst at Cenkos Securities, believed the banking sector could be facing billions of pounds in fines and damages actions as a result of the scandal.
The UK Government owns an 84% stake in the bank after it collapsed in 2008 as a result of the disastrous takeover of Dutch bank ABN Ambro.
- £3.8bn wiped off value of RBS as it is accused in rate-rigging scandal
- Payments to RBS, NatWest and UlsterBank customers delayed by glitch
- RBS boss cannot rule out further bonuses for executives
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