UPDATE 2-Sarkozy tells French banks to reveal bonus plans

* Sarkozy tells banks to reveal bonus plan

* Bonuses in spotlight after BNP Paribas provision

* French banking federation say outcry unwarranted

(Adds banking federation comment paras 7-9)

By Estelle Shirbon

PARIS, Aug 7 (Reuters) - President Nicolas Sarkozy ordered French banks on Friday to reveal their bonus policies following a public outcry over reports that some traders were heading for big payouts this year despite the economic crisis.

The heads of major French banks were summoned to talks with French Prime Minister Francois Fillon and were told Sarkozy wanted to meet them on Aug. 25.

They will be expected to report to him on their payout plans, as well as on whether they were living up to commitments to keep credit flowing to businesses and families, a statement from the president's office said.

"The president wants to make sure that French banks are following the rules agreed at the London G20, particularly in terms of remuneration," a statement said, adding that Sarkozy wanted these norms to be applied "firmly".

At a summit in April, G20 leaders promised to implement "tough new principles on pay and compensation". Sarkozy wants the next G20, scheduled for Sept. 24-25 in the U.S. city of Pittsburgh, to revisit the issue and adopt a tougher stance.

Outrage over bonuses, which many voters see as a provocation from a sector held responsible for the global recession, was rekindled this week when it emerged BNP Paribas (BNPP.PA) had set aside 1 billion euros ($1.4 billion) for possible bonuses.

MISUNDERSTANDING

Bankers said on Friday they had not done anything wrong and said they were following the G20 guidelines.

"There is a misunderstanding," said Ariane Obolensky, the director general of the French banking federation.

"For the time being, we are only talking about provisions. No decisions are made about bonuses during the year," she told France Inter radio, adding that eventual payouts would benefit all employees and not just an elite few on the trading floor.

Earlier this year the government, big banks and the market watchdog agreed on a deal that stipulated, among other things, there should be no guaranteed bonuses.

Economy Minister Christine Lagarde asked Bank of France Governor Christian Noyer on Wednesday to check on what the banks were doing and whether they were keeping their promises.

"As far as we know, the BNP Paribas provision is in line with G20 commitments. We will make very careful checks," Noyer said on Friday after the meeting with banking executives.

France has no law to limit bonuses, but a rescue package set up last year for the financial sector, worth 360 billion euros in taxpayers' money, adds moral weight to government pressure.

"Bankers, collectively, have to understand that this is a new era and we're not playing by the same rules any more," Lagarde told Europe 1 radio.

The bankers' cause was not helped by news on Thursday of an insider trading probe at Societe Generale (SOGN.PA), which was battered last year by a rogue trading scandal.

Appearing on France 2 state television on Friday, SocGen Chief Executive Frederic Oudea was subjected to a volley of questions on bonuses. He defended them as necessary to stop good staff from defecting to foreign rivals.

"The same rules have to be applied everywhere, otherwise these activities will move, will leave Paris and go elsewhere."

European Central Bank President Jean-Claude Trichet, questioned on the topic during an interview on RTL radio, said there had been "absurd" practices in the past but bonuses were "normal" as long as they were linked to performance. (Editing by Crispian Balmer)