Britain has set up a new organization, Banking Standards Review Council, which will take responsibility for raising standards in the banking industry in the country. The organization will rely on public naming and shaming of lenders that fall short as it attempts to clean up the sector after a series of misconduct scandals. Seven largest banks in the country have agreed to report each year to the council. The council will set standards for ‘culture, competence and customer outcomes’ and publish an annual report detailing where banks have failed. The setting up of the council was at the instance of Sir Richard Lambert, a former chairman of the CBI business group and previous Financial Times editor. It is expected to work alongside financial regulators. The standards will only apply to banks’ UK operations as it would be too difficult to apply them worldwide given the different regulatory landscapes.
