The amount, calculated by the
The sums illustrate the scale of the problem the industry faces in trying to clean up its reputation.
"What do these costs tell us? Could analysis of these costs be used by banks as part of their restoring trust agenda? Whatever they may say now about these being legacy issues, they can't keep saying that. These numbers need to be coming down over time," he said.
About pounds 19bn of the pounds 25bn was incurred in 2012, when, McCormick said, "payment protection insurance provision came home to roost". He said that accounted for the bulk of the increase in 2013.
McCormick is working with New City Agenda (NCA), a new thinktank co-chaired by the Labour peer
Lambert, who is to speak at a reception for MPs today, was asked in September by the chief executives of the
"The banks' conduct costs are harming their balance sheets, it's not good for . . . the wider economy. The money that is being spent on fines could be lent to business or [could] rebuild their capital so that they can serve their customers better," said McFall.
McFall, who was part of the parliamentary commission on banking standards set up following the furore caused by
Lambert, who is expected to update the City on his consultation next week, has published a consultation paper with 19 questions for the industry to address, including one covering the need to "help to develop a common set of benchmarks against which individual banks can assess their performance against others in their peer group".
McCormick is also hosting a conference at the LSE today to discuss ways of creating benchmarks. His conduct costs project at the LSE previously published data showing that 10 big banks, including
Most Popular Stories
- Florida Warns Beach-goers About Flesh-eating Bacteria
- Sutherland Responds to 'Unprofessional' Jibe
- LivePro Is a Mobile Hot Spot, Projector in One
- Islamic State Fights for Control of Syrian Oil Wealth
- Adrienne Bailon Disses Ex-Lover Rob Kardashian
- How to Fit Green Energy Into Your Portfolio
- U.S. Economy Grows at Fastest Pace in 10 Years
- Business Leaders Set for CHCC Convention
- Sanctions Will Hit Russia Hard if Not Lifted Quickly
- Is California Going to Land Tesla's Battery Plant?