Financial News

  • 19 May 2014, 15:14

Banking Standards: New Body To Restore Trust

A new watchdog charged with rehabilitating the damaged image of British banking is to be launched later this year.

The Banking Standards Review Council (BSRC) will be paid for by Britain's big banks, but is intended to remain independent of them.

The former boss of the Confederation of British Industry, Sir Richard Lambert, will be interim chairman of the body.

"Rebuilding confidence and trust in the banks is especially vital in the UK, because of the size of the banking system and the importance to the economy of London's role as an international capital market," Sir Richard said.

Among the BSRC's areas of responsibility is the monitoring of banking culture, including how well employees understand codes of conduct.

The council will also scrutinise the competence of bank employees and their professional qualifications.

It is also expected to examine data related to customer satisfaction and complaints.

The recommendations for creation of the BSRC follow an eight-month-long project led by Sir Richard.

His project was set up in the wake of a string of mis-selling and market-rigging scandals, which have tarnished the reputation of the banking industry.

Bank of England governor Mark Carney will chair a "panel of respected figures" from outside the industry to appoint a permanent chairman to replace Sir Richard and to ratify the appointment of its chief executive.

Sky's City Editor Mark Kleinman revealed on Sunday that Sir Richard's announcement would include a comment made by the chairmen of seven major high street lenders.

The body has the support of Barclays, HSBC, Lloyds Banking Group, Nationwide, Royal Bank of Scotland, Santander and Standard Chartered.

All other banks operating in Britain, including foreign-owned entities, have been urged to support the council.

Advertisement