United Kingdom

Details

  • Industry: Financial Services
  • Type: Press release
  • Date: 10/02/2014

Banking standards body is a vital step forward  

  • Body must “have teeth” and align with UK regulators

 

  • Metrics need to measure what is important

 

 

Responding to Sir Richard Lambert’s proposals for a new banking standards body, Bill Michael, EMA head of financial services at KPMG, commented:

 

“Creating a change in culture requires a fundamental change in mindset. While much is already being done, the scale of cultural change required in the UK is immense. It is not just about exiting risky business and simplifying products. It is about a demonstrable change in behaviour through all levels of banks. This will take a generation of bankers to work through.

 

“The introduction of a banking standards body is a vital step for the industry to rebuild its reputation, restore trust and put customers at the heart banking. However, we only have one chance to get this right.  We must ensure a robust and credible body - that is not controlled by bankers - is established.

“To succeed, it is imperative this body works in tandem with the FCA and PRA.  A parallel track of unconnected activity will not be effective and could make things worse by creating a confusing set of standards, rules and expectations. Conduct initiatives from all bodies must marry up at all times.

 

“The introduction of metrics will also help establish credibility but we must ensure they are measuring what is important, not just what is easily measurable. This will be a challenge as it requires looking at the business of banking differently - through the lens of the customer rather than the shareholder. Banks that fail against these metrics must be held accountable and disciplined. This body must have teeth or it won’t be able to make the difference UK society at large needs it to.”

 

                                                                                                                                                      Ends

 

Notes to editors:

 

 

For further information please contact

 

Monica Fiumara, Senior PR Manager, KPMG

Tel: +44 (0)20 7694 5674

Mobile: +44 (0)7901 105180

Email: monica.fiumara@kpmg.co.uk

 

KPMG Press Office: 020 7694 8773

 

About KPMG

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

 

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