Banking Commission recommends major overhaul
The Future of Banking Commission, set up in December 2009, is set to deliver a whole raft of suggestions and recommendations to number 11 Downing Street. At the heart of the suggested changes to the UK banking system will be an increase in saver protection and an "ethical culture" for front-line staff which could see commissions become a thing of the past. Over the next few days we will see more details regarding the recommendations and ultimately the UK banking system can expect a major overhaul over the next few years.
It is unclear how the recommendations could change the UK regulatory system which is currently headed by the Bank of England and the Financial Services Authority. There have been calls to make banks more responsible for not only their own solvency positions but also the introduction of customer targets for the future. In simple terms the commission is looking to reduce the risks to UK savers and bank customers in the future while also looking to ensure that the UK banking system does not experience a situation similar to the credit crunch ever again.
It was interesting to see that the banking industry itself gave evidence and recommendations to the commission although how the industry as a whole will respond to the final recommendations remains to be seen.
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