The Bank of England (BoE) governor Mark Carney wants to see exemplary behaviour from the major financial institutions in the UK.
Speaking at a lunch event at the World Economic Forum (WEF) in Davos he warned that institutions must not see fines for misconduct as a cost of doing business, before pointing out that "exemplary behaviour" would restore trust in the industry.
“While regulators will fix the mechanics of benchmarks in markets ranging from Libor to FX [foreign exchange], only private individuals and institutions can reform the behaviour that has made such changes necessary,” said Mr Carney at the lunch hosted by the CBI.
According to the Telegraph, he also told a group of senior bankers at the event that the most pressing issue for the banking industry in the nation is the costs associated with past conduct.
He is thought to have discussed the issues with Douglas Flint, chairman of HSBC, Peter Sands, chief executive of Standard Chartered, and Deutsche co-chief executive Anshu Jain, in a private session in Davos.
By Tony Aynsley