Paschal backs new bank board

A NEW banking standards board is on the way after a massive loss of faith by customers in the wake of the tracker mortgage scandal.

Finance Minister Paschal Donohoe welcomed the initiative, saying it was the start of a process of ‘rebuilding trust and confidence’ in the industry.

The five chief executives of the main retail banks – Allied Irish Banks, Bank of Ireland, KBC, Permanent TSB and Ulster Bank – have informed him of their intention to establish an Irish Banking Standards Board.

Minister Donohoe said: ‘In October I made it clear that the banks’ behaviour in relation to tracker mortgages was disgraceful. I welcome this initiative by the current leaders of the banking industry and look forward to receiving more detail when the process is formally launched by the five CEOs of our main retail banks in early February’. The new board will be modelled on a similar body in Britain.

It is proposed that it will be made up of experts from across civil society.

‘A strong customer-focused culture is a key ingredient in a reputable, sustainable banking sector which supports Ireland’s economic development,’ Minister Donohoe added.

The board will be chaired by a non-banking individual who has the ‘personal respect, credibility and trust’ of citizens, it was claimed.

An initial step will be the establishment of a selection panel to hire the chairman, CEO and board. It is envisaged that it will be operational later this year and will aim promote the highest ethical standards in banking.