Parliamentary Commission on Banking Standards
Commenting on the publication today of a report by the Parliamentary Commission on Banking Standards, Finance Secretary John Swinney said:
“This welcome report is highly critical of past behaviour of regulators and bankers and the continued political interference of the UK government. Banking plays a core role in supporting our economy, and our society and has a major part to play in securing our economic recovery. More must be done to ensure that our banks revert to traditional principles based on probity, prudence and stewardship, and the primary responsibility for this change rests with bankers themselves and their regulators.
“Crucially the report is clear that no bank should believe it will be bailed out by the taxpayer. Everyone should be clear that the days of an implicit guarantee from taxpayers to banks are over. Any decisions on the future of RBS must be based on long-term financial stability and value for taxpayers not the short term pursuit of profit or political expediency. RBS needs to return to its core business of serving communities and customers and supporting economic growth.
“The report calls for higher standards and greater professionalism within the industry which is in line with the Scottish Government’s own banking strategy. We are clear however that the primary focus of any reforms must be to deliver better and services for the bank’s customers and greater support for the wider economy.”