Changing banking for good’, a report submitted by PCBS advocates to fix individual accountability, improve corporate governance, competition and long term financial stability that upholds the standard of ethics and professionalism.
UK Chancellor George Osborne said, "High standards in banking should not be a substitute for global success. On the contrary, they can be a stimulus to it."
"The government is determined to raise standards across the banking industry to create a stronger and safer banking system."
In a bid to strengthen standards in banking system, the government is planning to introduce a criminal offence for misconduct for senior bankers and those found guilty can be awarded jail term.
It also aims to implement a consistent policy for bankers’ pay, which must be in accordance with their performance, including allowing bonuses to be deferred for up to 10 years.
It has also accepted that both the junior and senior management must act according to their defined roles and responsibilities and bank bosses should be held accountable for breaches within their areas of responsibility.
Giving more power to the Prudential Regulation Authority (PRA), the government aims to boost its role in ensuring that banking markets have with effective competition that delivers good outcomes for consumers.
"Cultural reform in the banking sector marks the next step in the government’s plan to move the whole sector from rescue to recovery and ensure that UK banks demonstrate the highest standards, and are able to support business and drive economic growth," Osborne added.
