Senior bankers in the UK are likely to undergo an annual competency check as per the new regulations to reform the British banking sector and safeguard it against future crises.
The proposed law, which was put forward by the opposition Labour party and is currently being discussed in the UK parliament, seeks to evaluate an individual against ‘minimum thresholds of competence’, reported Reuters.
Designed to bring austerity in the country’s scandal ridden banking sector, these regulations will also evaluate an individual against a recognised code of conduct for banking professionals.
Meanwhile, the UK government does not expect the proposed laws, which are intended to strengthen professional standards in banking, to bring about any significant improvement in standards.
Additionally, the government said that the change would only increase banks’ regulatory burden.
Most recently, the government asked the Bank of England to decide whether it needs more powers to control bank risk-taking.