Committee to finalise bank rule proposals

City A.M. Reporter
NEW proposals designed to improve standards and culture within banks will be thrashed out by a parliamentary committee in meetings this week that could influence the shape of the industry for years to come.

The Parliamentary Commission on Banking Standards, led by Conservative MP Andrew Tyrie, was set up by the government last July after Barclays was found to have manipulated global interest rate benchmarks.

After months of compiling evidence from former and current bank executives, regulators, central bankers, academics, politicians and consumer rights activists, the committee is putting the finishing touches to a 600-page report and will debate it today and tomorrow, industry and political sources said.

The commission’s final proposals will suggest there is not enough competition in the industry, the sources said, and that major banks are still not adequately regulated.

“One of the key issues is that the major banks are too big and too complex to be able to provide effective corporate governance,” one commission member said.