Incoming Bank of England governor Mark Carney has warned banks must do more to regain the public’s trust, adding the “time for remorse is far from over”.
Speaking in Canada in his current role as governor of the Bank of Canada, Carney said banks need to “participate actively in reform, not fight it”, according to The Telegraph.
He said: “Until recently, too few bankers acknowledged their industry’s role in the fiasco. The time for remorse is far from over.”
Carney urged banks to increase their capital and carry out more frequent stress testing to “expose excessive mismatches in maturities and currencies, find evidence of undue forbearance in lending and reveal excess or correlated asset concentrations”.
The Telegraph says Carney, who will take over as BoE governor on 1 July, claimed pay reform for bankers would not prevent new scandals but warned money should not be the only measure of staff performance.
He said: “When bankers become detached from end-users their only reward is money, which is generally insufficient to guide socially useful behaviour.”
Carney also warned the breakdown in trust between banks, depositors, customers, investors and regulators could lead to a more fragmented global financial system and slower economic growth.