DUBLIN (Reuters) – Bank of Ireland blamed state-imposed curbs on bankers pay and bonuses for the announcement on Monday that Chief Financial Officer Myles O’Grady would leave the bank for a role outside the financial sector.

Ireland had capped the annual pay of executives at 500,000 euro ($552,300) during more than 10 years ago’s most costly banking rescue in the euro area. The ban on variable and fringe pay for bank employees was effective immediately. This is a restriction that lenders claim hinders their ability to attract and retain talent.

Francesca McDonagh is the Chief Executive of Bank of Ireland. She stated Monday that the ban had placed the nation’s largest bank in terms of assets at a competitive disadvantage against other businesses and stock exchange members who are not subject to the same restrictions.

McDonagh stated that Myles’ departure from the Irish banking industry highlights the challenges Irish banks face in recruiting and keeping talent.

McDonagh stated, “The normalisation and sustainability of the native banking sector is essential now.”

The bank stated that O’Grady would remain at his current position through his exit, expected in March 2022. Andrew Keating (NYSE:), O’Grady’s previous boss, left the bank in order to assume a high-ranking financial position at CRH (NYSE):

Richard Pym was the former Chairman of Allied Irish Banks. He described Ireland’s banking system as a place for training rivals, after his bank lost its chief executive within weeks.

After the 2008 financial crisis, the Irish government poured 64 billion euros, or nearly 40%, into its banks.

It retains the majority of AIB and permanent Tsb but is selling its Bank of Ireland 12% stake.