Banks’ cultural performance is still lagging

More than a decade after the financial crisis, public trust in banks is falling and the Banking Standards Board’s 2019 assessment of culture reveals minimal progress, reports Denis O’Connor.

Denis O’Connoris a fellow of both the Institute of Chartered Accountants in England & Wales and the Chartered Institute of Securities and Investment. He was a member of the British Bankers’ Association Money Laundering Committee from 2003-10 and a member of the Joint Money Laundering Steering Group’s board and editorial panel between 2010 and 2016. He has been a frequent speaker at industry conferences on financial crime issues, both in the United Kingdom and abroad.

In the wake of the financial crisis and the revelation of widespread misconduct by United Kingdom banks, leading industry participants realised they had to improve standards and regain the trust of the public. Therefore, seven large institutions created the Banking Standards Board, with the primary objectives of promoting standards and restoring trust. Membership of the BSB is voluntary as is participation in its various initiatives. The BSB has no powers of sanction for any members who fail to meet its standards or who cause significant customer detriment. The BSB has also stated that it will not act as a lobby group on behalf of its members.