New banking watchdog to 'restore public trust'

A new banking watchdog will be set up to "restore public trust" in the sector, according to the men behind it.

Read: Clegg heads Carney's warning on housing boom

The city
The Banking Standards Review was set up after the payment protection mis-selling and Libor fixing scandal. Credit: PA

The Banking Standards Review, conducted by Sir Richard Lambert, is expected to announce a series of measures designed to restore public faith in bankers.

Sir Richard said the new organisation also needed to be run by non-bankers and that banks needed to focus on their customers.

The report will not focus on bankers' pay or bonuses and will lack disciplinary powers.

Read: MPs' Libor report scathing

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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.