A new Banking Standards Review Council is set to launch which will oversee the behaviour and competence of the industry. Sir Richard Lambert who is acting as interim chairman has set out the BSRC proposal. The body will be funded by the banking industry and early adopters include HSBC, Barclays, Lloyds, Nationwide, RBS, Standard Charter and Santander.The BSRC plans to publish an annual report naming and shaming those banks that do not meet satisfactory standards. The aim of the BSRC is to clean up the industry, which has been heavily criticised for misconduct and rate-rigging in the past. Membership is voluntary however it is predicted that all the major lenders will fall into line in an effort to rebuild public confidence.
The BSRC will have no powers to impose fines or verify independent banking reports. The public and regulatory spotlight still shines brightly on the sector, which will now be focusing efforts on conduct in a bid to restore public trust and avoid any future fines that currently stand at £20bn since 2011.