The Parliamentary Commission on Banking Standards has called for written evidence, including views on whether professional standards in the sector are “absent or defective” and what this means for retail customers.
The commission is being chaired by Treasury select committee chairman Andrew Tyrie and is set to report on 16 December, with its findings being considered for inclusion in the bank reform bill, expected to be published in January.
Earlier this month, Tyrie said the inquiry will be “ringfenced” around what lessons can be learned for banking corporate governance from the Libor-rigging scandal.
The commission wants comments on whether professional standards are absent or defective, how they compare to other professions and the consequences for retail and wholesale customers and the wider economy.
Tyrie says: “Banks should exist to support their customers, both retail and wholesale. Some of these customers have been badly let down. Almost everyone is agreed standards in banking have lapsed. We need to gauge the scale of the problem and identify likely remedies.”
The commission also wants evidence on:
- The consequences of any lapses in professional standards for public trust in, and expectations of the banking sector.
- What lays behind any lapses in professional standards, including: culture, the incentivising of risk-taking, the impact of globalisation, regulatory arbitrage, impact of financial innovation and technological developments, corporate structure, including the relationship between retail and investment banking, competition and taxation.
- What can be done to address any weaknesses in professional standards. Does it require action by the banks themselves, regulators or legislators? Can be achieved domestically or is it reliant on international coordination?
- Whether current work by Government, regulators and industry is sufficient.
The commission says that the “tight deadline” of reporting by December means they want evidence before 24 August.