AIB had made no formal request to the Government to remove the cap on senior staff salaries, Taoiseach Enda Kenny said today.
"I would need to see an exceptionally compelling case from any bank coming before government with a request to breach this ceiling," he added.
He told the Dáil he had rarely seen the level of frustration which existed among people about "the carry-on of some bankers over the years".
Those working at the lower level of banks had taken the brunt of the stick for those who exemplified greed and rank bad behaviour in reckless lending practices.
Mr Kenny was replying to Sinn Féin leader Gerry Adams, who said he understood the AIB had made a request to the Department of Finance in recent days that the €500,000 cap on a chief executive’s salary should be increased because it was experiencing difficulties recruiting for the top jobs.
Fine Gael and Labour, he said, had "poured cold water" on Fianna Fáil when it brought in the cap.
"It is inconceivable you would countenance such an increase at a time of huge distress…at a time when people are scandalised by the fat pensions some of these bankers are going off with," he added.