Banking Code

HL Deb 21 February 2005 vol 669 cc174-5WA

Lord Dykes

asked Her Majesty's Government:

Whether they will consider the case for the additional regulation concerning the treatment of private customers by United Kingdom retail banks. [HL1309]

Lord McIntosh of Haringey

Almost all banks, building societies and credit card companies dealing with personal customers in the UK are signatories to the banking code. This sets standards of good banking practice for financial institutions to follow when dealing with their customers.

The Government believe that self-regulation, such as the banking code, can play a vital role in protecting consumers—and can do so in a way that is flexible and reduces the burden on business. The Government support the banking code, which is enforced by the Banking Code Standards Board and is subject to regular independent reviews to ensure that it continues properly to balance the needs of consumers and of industry.