Osborne endorses proposals to raise banking standards

8th Jul 2013 13:05

UK Chancellor George Osborne on Monday endorsed plans to crack down on banking standards with a set of strict new rules. He said he intends to implement the main proposals from Britain's Parliamentary Commission on Banking Standards (PCBS), including rules that would see senior bankers face jail time and lose millions of pounds in bonuses if they are involved in a future banking collapse. Osborne also backed recommendations for improvements in corporate governments to ensure that firms have correct systems in place to meet standards."The government will implement its main recommendations," he said in a statement."Where legislative changes are required we will amend the Banking Reform Bill which is currently before Parliament."The proposals will be added to the banking reform bill currently in parliament.The Commission was set up last year after Barclays was fined for LIBOR rigging. Banking practices were placed under the microscope following the 2008 financial crisis as many Britons blamed the risk-taking of lenders for the economic slump.Osborne said he plans to give the Prudential Regulation Authority (PRA), the Bank of England's new watchdog, the task of improving competition in the industry to ensure customers have more choice and ease in being able to switch lenders.He also said he would work with regulators to align bankers' pay with their performance.RD