Parliamentary Commission on Banking Standards
Our response to the Parliamentary Commission on Banking Standards report
On Wednesday 19 June, the Parliamentary Commission on Banking Standards published its final report Changing banking for good, containing recommendations aimed at raising UK banking standards.
Better, not necessarily more, regulation was the Banking Commission’s message, which was ironic given the wealth of future regulations and standards that will need to be drafted, and further studies and investigations that are still to be launched.
The comprehensive report does, however, mark an important step toward more definite rules and proposals for banks operating in the UK, advocating a shift from box ticking to judgement-based regulation.
Evidently there is no silver bullet for raising standards, and, despite recent reforms, the report concedes that many problems persist. Therefore the Commission’s report outlines a package of recommendations aimed at: “Making senior bankers personally responsible, reforming bank governance, creating better functioning and more diverse markets, reinforcing the powers of regulators and making sure they do their job effectively.”