Asia's home-grown investment banks are registering an ever stronger presence in the industry. They're not only paying higher salaries than their international counterparts, but are also realizing the importance of nurturing their own grassroots talent.

Chinese Investment Banker Fan Bao has awards proudly displayed on the walls of China Renaissance Partners.

A banking Veteran who once worked at Morgan Stanley and Credit Suisse, Fan returned home six years ago to build China Renaissance into a successful homegrown investment bank.

Fan Bao, Partners Chairman and CEO of China Renaissance said "In terms of pay scales, they're getting (are) similar, you know, some of the local investment banks actually pay very competitively, at least at an entry level. And also, these young graduates, when they look for a job, they're not only looking for near-term pay, they'll also evaluate the whole career program."

Last year's $20 billion Hong Kong IPO of China's AgBank was just one of many profitable deals that have helped boost banks' earnings in the region. But despite high rewards, some Western banks are restricted by tough new rules on compensation. For investment banks like RBS, which is over 80% owned by the UK taxpayer, that makes paying multimillion Dollar bonuses, even in Asia, more difficult.

John McCormick, RBS Asia CEO said "Well, I think that a lot of the banks now are adhering to the G20 principles, and are beginning to align themselves with the norms of their own domestic regulator."

Mandarin speakers with good contacts in China, Western educated and with experience working for global banks, are the most sought-after here in Asia. And cash-rich Chinese banks are not only making competitive offers, but in some cases, offering all cash up front.

Andy Brown, Chief of RBS Asian Financial Institutions Research said "Cash has become a little bit more scarce in the compensation packages, and so yeah, you know, to be certain, a Chinese bank that can step up with all cash, it has attractions."

Banks are getting more creative to hone in talent. Swiss bank UBS recently built a swanky business school on a grassy campus in the center of Singapore.

The building resembles an upscale country club and holds classes for thousands of UBS employees in Asia Pacific.

Offering classes from risk and regulation to senior management skills, students say getting out of the office and in a classroom environment is the key to successful training.

And Investment Banker Fan Bao would agree that success comes with investing in your employees.

Fan Bao, Partners Chairman and CEO of China Renaissance said "You're not very competitive if you always rely on lateral hires in the market. You are competitive because you have your own ability to produce the fresh blood."

So as revenues continue to grow in the region, Asia may just become the safe haven from the bonus-busting regulators in the West.