Lambert’s new rules for better banking

BANKS WILL have to report publicly each year on how they are performing against new rules on behaviour and competence under proposals for an independent organisation to oversee the industry.

The body will also assess and validate training programmes for bankers, the plans set out by former CBI boss Sir Richard Lambert show.

It is intended to act as an independent champion for better banking standards.

But Sir Richard admitted the new organisation, funded by the industry, might struggle to win credibility initially and would have to show from the start that it is not a lobby group for the banks.

It will have no statutory powers and will stop short of being able to take away bankers’ licence to operate.

Sir Richard was asked to set up the body by the chairmen of Barclays, HSBC, Lloyds, Royal Bank of Scotland, Santander, Standard Chartered and Nationwide.

Under his plans the new organisation will work with banks and building societies to def ine standards of conduct and assess how well they are doing at meeting the standards against relevant benchmarks.

Sir Richard said: “The objective is a measurable and continuous improvement in the conduct and culture of banks and building societies doing business in the UK.

“The credibility of the new body will be built on the independence of its board, and on widespread industry participation.”