The Walker report which set out the agenda for banking reform to ensure stability, greater bank board responsibility and tighter pay controls yesterday was broadly welcomed by BBA.
BBA chief executive Angela Knight said: "The Walker Review is about strong governance: It is about ensuring leadership by boards and proper risk controls across the business in both banks and other financial institutions, and it is also about getting the debate on pay packages into the right place by ensuring reward structures look to the long term."
She added:” It is also about addressing the responsibilities of the major investors to look at long-term strategies and not just short term returns. They are owners, not just investors.”
Knight said the BBA had already seen many of the Walker proposals in action and thought these proposals would effectively bring all firms’ governance up to the standards of the best and are therefore to be welcomed.
"These proposals added together make very substantial changes to the rules. The next step – and the key step – will be to get similar high standards adopted internationally," she said.
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