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Defining a sustainable business model for banks

The reform of the UK banking sector has created a unique opportunity to rethink precisely what the sector should provide. The size and profile of the UK banking sector, and its importance to the economy, gives rise to tensions that require ongoing and careful management.

Bank leadership must take action to rebuild a healthy banking sector in the UK. We are part of a coalition of thoughtful, principled bank leaders, investors and sector experts: the BankingFutures Group. Together, we aim to catalyse a dynamic public consultation on how to rebuild a healthy UK banking sector. 

Following a six-month consultation with over 200 stakeholders (from senior banking leaders to civil society stakeholders), the BankingFutures Group produced a final report in February 2016. The report offers three key recommendations:

  1. Banks to better serve the real economy’s current and future needs
  2. Bank leaders commit to work with the Investor Forum to create banking and investment cultures that enable the sector to deliver long-term value
  3. Bank leaders commit to a public process involving consumers, civil society and regulators to improve their duty of care and respect for customers

What next for banking sector reform?

The banking sector has a long journey ahead before it can regain societal, investor, consumer and regulatory trust. However, this is about more than simply banks alone, and we believe that banking reform is a cultural challenge as well as a regulatory one. To tackle and ultimately overcome this challenge will require thoughtful, principled leaders from all stakeholders participating in the debates about how to create a healthy banking system.

July 2017 - Banks need to disclose genuinely available capital

Head of Stewardship Natasha Landell-Mills writes to the Financial Times as part of our investor coalition, asking the Bank of England to demand that banks disclose what capital is genuinely available to absorb losses in a crisis, and what is not - not what is available under misleading International Financial Reporting Standards.

Read the letter (subscription required)

BankingFutures project releases report

Natasha Landell-Mills has participated in the BankingFutures project, which recently released the report “Banking on Trust: Engaging to rebuild a Healthy Bank Sector”. The project brought together senior executives from the largest UK banking industry and members of the investment community – with additional input from civil society and customer representative groups – to explore what a sustainable banking industry might look like. The report proposes targeted work that we believe could help to re-establish trust and a healthy banking industry focused on delivering value for customers, society and thus shareholders.

Read the report