"The government is determined to raise standards across the banking industry to create a stronger and safer banking system"
- U.K. Chancellor of the Exchequer George Osborne
The U.K. is going to adopt a raft of proposals aimed at raising standards at the banking sector following a string of scandals, as the Chancellor George Osborne is looking to avoid future scandals stemming from reckless behaviour of the nation's bankers. Osborne also stressed out that bankers will face jail and the loss of millions in bonuses in case they are involved in a future banking collapse. Pay reform is a part of programme proposed by the commission, set up by Osborne last year after a series of scandals and almost five years of weak earnings reports from the financial industry. His programme will allow bonuses to be deferred for up to ten years, and will allow all bonuses to be clawed back, when a financial institution will receive taxpayer help. At the same time, corporate governance will be improved in order to ensure companies have the correct systems in operation to identify risks and maintain standards of culture and ethics.
Also Monday data from accountants and business advisers BDO LLP showed that business confidence in the U.K. followed the uptrend in June and reached a 13-month high, with the services sector recording the strongest business morale. A headline confidence gauge ticked up for the fifth straight month in June reaching 94.3, with optimism amid the services companies strengthening most to 95.5, 0.5 points higher than the 95 benchmark level.
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