If the banking sector is to restore confidence and trust it must have “strong, effective and well-informed” management and governance, not just financial resilience, according to the Bank of England (BoE).
The comments come after eight high street banks underwent a stress test to assess how well they would cope if there were another financial crisis. The Co-operative Bank was the only one to fail the test, whilst Lloyds Banking Group and the Royal Bank of Scotland barely made it through.
Minutes from a Financial Policy Committee (FPC) meeting earlier this month state, “Committee members also noted that recent misconduct and other operational failing had highlighted that rebuilding confidence in the banking system would require more than financial resilience.
“Changes to banks’ business models in response to commercial and regulatory developments were expected to challenge management capacity over the next few years. In this environment, the Committee judged that strong, effective and well-informed management and governance would be essential to rebuild confidence in the banking system.”
Investigations into banking operations, such as bankers being accused of manipulating benchmarks, have led to negative new stories this year. Additionally, many banks have faced criticism in terms of security, customer service and transparency.
Consumer trust in the UK banking sector has been an issue since the financial crisis. Whilst a survey from EY, published in March, showed that after years of decline, trust had stabilised, the UK still lags behind the rest of the world. Some 15% of UK participants said they had minimal or no trust in their main finance provider, double the levels seen in Germany, France and the UK. One of the main drivers behind this was cited as recent news articles.
Photo: Rev Stan via Flickr
Like our Facebook Page
Investing in a Sustainable Environmental Future for Northern Virginia
Prominent Trends in Seafood Sustainability in 2022
Can PEMF Help To Improve Plant Growth for Eco-Friendly Gardeners
How the U.S. Government is Promoting Green Energy in the Country
12 Essential Things for Buying Your First Home
Harnessing Sustainability with User-Centric Technology Innovation
Making Your Dream of Having an Eco-Friendly Garden Come True
Tips for Optimal Waste Management in Your Home
The Agricultural Benefits of Weather Stations for Eco-Friendly Farmers
What Makes Online Furniture Eco-Friendly?
7 Eco-Friendly Plant-Based Alternatives for Everyday Products
Top 5 Benefits of Eco-Friendly Cars
Why Eco-Friendly Homes Should Have Outdoor Bathrooms
Merits of Sustainability Reporting: What Every Manager Must Know
Low Emission and Clean Air Zones: What You Need To Know
4 Ways To Build A Sustainable Home
CEO Brian Ladin Explains How The Shipping Industry Is Going Green
A Guide to Eco-Friendly Landscaping
Why Transitioning Your Company to an EV Fleet Makes Sense?
6 Practices for Sustainable and Eco-Friendly Plant Operations
- Features11 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy11 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features11 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Features10 months ago
5 Compelling Reasons to Hire an Eco-Friendly Contractor