Banking watchdog 'will not be allowed to lobby'

The new banking sector watchdog will not be allowed to use any political connections it has to influence Government policy, it has emerged.

Other recommendations expected are:

  • The watchdog will be funded by the banks, but will be independent.
  • It will look at the behaviour of banks eg. around issues of how they incentivise staff to sell products.
  • Membership is voluntary.
  • The report is expected to cover all banking but will not make any recommendations about bank structure.

Read: Carney to help find banking watchdog chief

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Banks to get new watchdog in attempt to 'restore public trust'

A new watchdog will be set up to overlook the UK banking industry and "restore public trust" after scandals around Libor fixing and mis-selling of personal protection insurance. Recommendations will be announced in the Banking Standards Review.