In response to the Parliamentary Commission on Banking Standards’ first report,
Which? chief executive Peter Vicary-Smith said:
“We agree that the ring-fence between retail banks and their risky investment arms must be robust to ensure consumers never again have to foot the bill for a banking bailout that cost £2000 for every man, woman and child. The Banking Reform Bill must be strengthened, and banks should implement the ring-fence as soon as possible, not wait until 2019. The Prudential Regulation Authority should also be given a strong objective to promote effective competition and encourage new banks into the market.
“We also need to see much wider reforms to banking culture and practices if we’re to avoid a repeat of the mis-selling and rate-rigging scandals of recent years. Only this month we found that bank staff are under more pressure than ever to sell. It’s vital that bankers are punished for mis-selling and bad practice, and are made to comply with a code of conduct that is fully independent of the banking industry and backed by statute. The Commission needs to take this once in a generation opportunity to change our banking system to one that consumers can trust in again,and make sure it works for customers, not bankers.”