A report into the future of banking standards has suggested senior bankers who are found to have demonstrated "reckless misconduct" should be held fully responsible for their actions and even face jail terms.
Volume one of the Parliamentary Commission on Banking Standards' (PCBS) final 'Changing Banking For Good' report outlined a number of recommendations designed to reform the banking sector following a series of failings and scandals over the past year.
Key recommendations put forward by the commission included:
• The introduction of a Senior Persons Regime, under which senior bankers would be assigned the most important decisions and responsibilities. This would mean specific senior individuals are accountable for the outcome of decisions and standards within an organisation.• Make reckless misconduct in the management of a bank from senior individuals a criminal offence carrying a custodial sentence.• A new licensing system under the Banking Standards Rules would ensure senior bankers responsible for crucial decision making would be subject to all enforcement powers from regulators.
Chief executive of the British Bankers' Association, Anthony Browne, said the PCBS's banking report was the "most significant" of its kind for a generation.
"There has already been a huge amount of change in the industry since the financial crisis but the banks recognise that more needs to be done," he said.
"Regaining trust is an absolute priority - we want the UK's banking industry to once again set the gold standard for professionalism and integrity," he concluded.
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