CBI hails banking watchdog as 'sensible way forward'

The UK's leading business lobby group has praised the recommendations on UK banking standards by Sir Richard Lambert, which aim for continuous improvement and transparency in the sector, as a "sensible way forward".

Katja Hall, chief policy director of the CBI, said:

With the political and regulatory spotlight now firmly on conduct, a swift and positive response from the banks to these proposals, combined with changes already underway, should help to rebuild trust in this important sector over time.

In addition, with more new players entering the banking sector, and competition hotting up, good customer relationships are a real competitive advantage for banks.

Read: Sir Richard Lambert lists aims of new banking watchdog

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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.