The Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD, today (Tuesday) met CEOs and executives from the five retail banks in Ireland* to discuss their progress in establishing a new Banking Standards Board.
The banks informed the Minister that the review and design phase for the new entity, which will now be called “The Irish Banking Culture Board” (IBCB) has now been completed. The Board will be an independently led entity to ensure that the industry is focused on the best interests of the customer and leads to a sustainable banking industry that promotes the highest standards of behaviour and professionalism.
The establishment of the Board was an initiative from the banking industry in Ireland aimed at rebuilding trust and confidence in the industry following the tracker mortgage scandal. It was first announced in December 2017 and the establishment costs and annual running costs will be funded by the retail banks themselves.
Key principles of the new entity will include:
- It will be about standards and principles rather than rules
- A focus on behaviour, ethics and culture
- It will partner and complement existing structures and bodies such as the Institute of Bankers
- It will be an advocate for the interests of bank customers and a sustainable industry
The banks also updated the Minister on what will happen over the next 6-12 months. This includes the search for an independent Chairperson that will conclude in Q4, the appointment of the wider Board, an initial culture survey intended to provide a base line assessment and a stakeholder consultation process.
Commenting on the meeting the Minister said: ‘I welcome the progress that has been made in establishing the Board in recent months and I note the planned change in name for the organisation to the Irish Banking Culture Board. This recognises that the journey our banks are on is about more than standards and is about the culture that we all want in place across our banks in this country. I look forward to further engagement with the industry and the future Chairperson of the Board in due course’.