The Great Debate UK

The Banking Standards Review Council has the potential to make a difference


–Tim Dolan is a Partner in the Financial Markets team in King & Wood Mallesons SJ Berwin’s London office. The opinions expressed are his own.–

With the Financial Services Authority (FSA) already replaced by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), what use does the UK have for another new financial sector body, the Banking Standards Review Council?

The Banking Standards Review Council (BSRC) will not be a regulator, providing day-to-day supervision of banks, it will review the progress that banks make in improving their culture, competence and customer outcomes, and report on that progress to the public annually.

The BSRC will review individual banks’ standards of good practice, such as whistle-blowing protocols, suggestions about appropriate retail sales incentives and processes for handling businesses in distress. It will focus on increasing the value placed on industry qualifications and encouraging good practice in learning, development and leadership, and it will meet with each participating bank’s non-executive directors on an annual basis to discuss their progress in meeting desired outcomes.

from The Great Debate:

U.S. mouth writing checks its body won’t cash

James Saft Great Debate -- James Saft is a Reuters columnist. The opinions expressed are his own --

A look at credit insurance prices for U.S. banks shows that market thinks the government's mouth is writing checks its body can't or won't cash.

Despite a blistering rally in bank shares and Herculean efforts by the U.S. to build confidence in its financial sector, the price of insuring some leading banks' debt against default has increased markedly in recent weeks.