Can we tame the bankers? A critical review of the functions of the UK’s banking standards board

The global financial crisis occurred nearly ten years ago but trust in the banking industry still needs to be rebuilt and enhanced. Owing to the inherent limitations of hard law regulation, the ethical approach for restricting bankers’ behaviour in financial activities is widely supported by law scholars and practitioners. The Banking Standards Board (BSB) as a new self-regulatory body has been established in order to promote high standards of behaviour and competence across UK banks and building societies. However, by reference to the lessons from the banking scandals in the recent decade, the ignorance of making the effort to emphasise the personal responsibilities of bankers in the UK banks may negatively impact institutional effects of the BSB in practice. This issue should be paid particular attention in order to reform the BSB in the future