Five questions answered on the Parliamentary Commission on Banking Standard’s report

What does it say about banking culture?

The Parliamentary Commission on Banking Standards, set up by Chancellor George Osborne, has today released a report on the banking system. We answer five questions on the reports recommendation.

What are the main findings of the report?

The fifth report from the commission, which was established last year in response to a number of scandals involving the banking industry, recommended that senior bankers guilty of reckless misconduct should be jailed.

It also lambasted the lack of accountability of bankers and recommended that some bonuses should be withheld for up to 10 years.

"Senior executives were aware that they would not be punished for what they could not see and promptly donned the blindfolds.

"Where they could not claim ignorance, they fell back on the claim that everyone was party to a decision, so that no individual could be held squarely to blame - the Murder on the Orient Express defence," the report said.

What other recommendations does the report make?

It called on the government to review alternatives for selling off the Royal Bank of Scotland (RBS) and said there should be more action to make the banking market more competitive.

Other recommendations were that banks should be legally required to put financial safety ahead of shareholder interests.

 Senior bankers should be assigned clear personal responsibilities, with the legal onus on them to show they have done all that is reasonably required.

Deferred pay and pension rights should also be cancellable if a banker misbehaves, or - in the case of senior managers - if the bank has to be bailed out.

Did the report say anything about banking culture?

Yes. It suggested banks should publish their gender ratios and take action when there is an imbalance. It attacked the male-dominated culture on trading floors.

It also said there should be an independent code of conduct for bankers and more needs to be done to change banking culture.

What has the government said about the report?

The called it an "impressive piece of work" and have vowed to respond to the report before the summer recess.

A spokesperson speaking to the BBC also said:

"Where legislation is needed, we have said we will support it, and the banking bill currently before Parliament can be amended to ensure they are quickly enacted.”

Liberal Democrat peer Lord Oakeshott, also told the BBC: "Why are there no banged-up bankers? That's what most people want to know after the last five years of scandals and shame."

What have representatives of the banking industry said?

Former RBS chairman and chief executive Sir George Mathewson told the BBC his opinion on the recommendation to defer bonuses for up to 10 years:

"I find that a little strange. If you are going to have bonuses, they are to incentivise behaviours. Ten years out is not an easy way to imagine incentivisation occurring."

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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PMQs review: Theresa May shows how her confidence has grown

After her Brexit speech, the PM declared of Jeremy Corbyn: "I've got a plan - he doesn't have a clue". 

The woman derided as “Theresa Maybe” believes she has neutralised that charge. Following her Brexit speech, Theresa May cut a far more confident figure at today's PMQs. Jeremy Corbyn inevitably devoted all six of his questions to Europe but failed to land a definitive blow.

He began by denouncing May for “sidelining parliament” at the very moment the UK was supposedly reclaiming sovereignty (though he yesterday praised her for guaranteeing MPs would get a vote). “It’s not so much the Iron Lady as the irony lady,” he quipped. But May, who has sometimes faltered against Corbyn, had a ready retort. The Labour leader, she noted, had denounced the government for planning to leave the single market while simultaneously seeking “access” to it. Yet “access”, she went on, was precisely what Corbyn had demanded (seemingly having confused it with full membership). "I've got a plan - he doesn't have a clue,” she declared.

When Corbyn recalled May’s economic warnings during the referendum (“Does she now disagree with herself?”), the PM was able to reply: “I said if we voted to leave the EU the sky would not fall in and look at what has happened to our economic situation since we voted to leave the EU”.

Corbyn’s subsequent question on whether May would pay for single market access was less wounding than it might have been because she has consistently refused to rule out budget contributions (though yesterday emphasised that the days of “vast” payments were over).

When the Labour leader ended by rightly hailing the contribution immigrants made to public services (“The real pressure on public services comes from a government that slashed billions”), May took full opportunity of the chance to have the last word, launching a full-frontal attack on his leadership and a defence of hers. “There is indeed a difference - when I look at the issue of Brexit or any other issues like the NHS or social care, I consider the issue, I set out my plan and I stick to it. It's called leadership, he should try it some time.”

For May, life will soon get harder. Once Article 50 is triggered, it is the EU 27, not the UK, that will take back control (the withdrawal agreement must be approved by at least 72 per cent of member states). With MPs now guaranteed a vote on the final outcome, parliament will also reassert itself. But for now, May can reflect with satisfaction on her strengthened position.

George Eaton is political editor of the New Statesman.