The ongoing tracker mortgage scandal is the latest in an "unacceptably long list of cultural failings in financial services firms" the deputy governor of the Central Bank said on Tuesday.
Speaking at an Eversheds Sutherland conference on leadership and culture in financial services. Ed Sibley told the audience that restoration of trust in financial services is "vital" for the system to be effective in serving the economy and its customers sustainably over the long term.
“ Cultural change is as urgent as technology, business model and regulatory changes,” he said.
Mr Sibley noted the tracker mortgage scandal as an example of an 'is it legal?' attitude, which still pervades in too many institutions. He said the Central Bank is under no illusion that "continued and concerted pressure is required to ensure all affected customers receive redress and compensation and banks comply with our findings." He said he expects all the main banks will be subject to Central Bank enforcement investigations.
On the culture front, Mr Sibley noted that the Central Bank continues to enhance its approach.
“Work has been undertaken in banks and insurance firms from a prudential perspective, and in the consumer area we have developed a framework for the assessment of culture in regulated entities. As has been well documented, this work will be expedited across the retail banks over the coming months, and be rolled out further after that,” he said.
On the importance of diversity at a leadership level in addressing behaviour and culture risks, he noted the acute imbalance in gender and other aspects of diversity in financial services firms, which needs to be addressed, and which will be the subject of further Central Bank scrutiny.
