8 Feb 2009

Darling plans review of banks

12:48 pm on 8 February 2009

British finance minister Alistair Darling plans an independent review of the management of banks and their bonus structure.

Writing in the Sunday Telegraph newspaper, he stated: "We cannot return to business as usual."

The review will make recommendations about the effectiveness of risk-management by the boards of banks, including how pay affects risk-taking.

The paper said Mr Darling would announce who would chair the review and its terms of refence on Monday.

In October, he and Prime Minister Gordon Brown announced a bailout plan for British banks that have lost market confidence.

MPs will question executives from a range of banks including Lloyds, HBOS, Royal Bank of Scotland, HSBC, Barclays and Banco Santander on Tuesday and Wednesday next week.