"We believe that the business practices for which Barclays has rightly been criticised were shaped predominantly by its cultures, which rested on uncertain foundations. There was no sense of common purpose in a group that had grown and diversified significantly in less than two decades."Respondents to Edelman's Trust Barometer who said they were already familiar with the scandals cited three key reasons for the banking scandals: corporate corruption (25 percent); corporate culture driven by compensation/bonuses (23 percent); lack of regulation (20 percent). The Salz Review focuses specifically on the first and second of these, with the third being out of Barclays' control. The bank has, accordingly, implemented an ambitious effort to transform its internal culture, as detailed by Doherty in the Holmes Report earlier this year. However, the public appears to have a rather different remedy in mind when it comes to banks that have transgressed. According to the Trust Barometer, their favourite approach is more government regulation, despite the belief that these scandals were largely self-inflicted. That conclusion should worry everyone in the banking industry. The Salz Review is undoubtedly a step in the right direction, but unless the entire industry undergoes a genuine transformation of its behaviour, it seems likely that calls for more government regulation will only increase.
The Innovation SABRE Awards - North America 2017
Extended deadline November 7 - don't miss out!