BOE Denies Any Role in Scrapping of U.K. Banking Culture Review

  • BOE says it had `no influence or role' in FCA's decision
  • Central bank says it `consistently raised' culture issues

The Bank of England said it played no part in a decision by a U.K. financial regulator to drop a review of the culture in the banking industry.

In a statement issued on Tuesday, the BOE in London said it had “no influence or role in the Financial Conduct Authority’s decision to drop its thematic review on culture and it would be wrong to suggest otherwise.” The authority’s announcement last month that it won’t deliver an overarching and instead work with banks on an individual basis has proved controversial, with a Parliament hearing into the matter planned for later this month.

The central bank was responding to an article in the Financial Times that said BOE official Megan Butler, on secondment at the FCA, was a “key figure” overseeing the plans to drop the inquiry. The BOE, led by Governor Mark Carney, said it has “consistently raised issues around banking culture” and has taken steps to improve accountability in the industry.

The review of banking culture was a priority of former FCA Chief Executive Officer Martin Wheatley, who was forced out by Chancellor of the Exchequer George Osborne last year. Interim CEO Tracey McDermott and FCA Chairman John Griffith-Jones have been asked to attend a hearing of Parliament’s Treasury Committee to explain their decision to drop the review.

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