The Chancellor of the Exchequer, the Secretary of State for Business, Enterprise and Regulatory Reform and the Financial Services Secretary to the Treasury have announced a review to recommend measures to improve the corporate governance of UK banks, particularly with regard to risk management.
The review is being chaired by the former financial services regulator, Sir David Walker.
The review will examine:
- Board management of risk (including the effectiveness of risk and audit committees).
- Incentives to manage risk in bank remuneration policies.
- The competences needed on bank boards.
- Board practices and structures.
- The role played by institutional shareholders.
The review will give preliminary conclusions to commissioning Ministers in the autumn and final recommendations by the end of the year.