Virgin Money calls for UK banking overhaul

18 September 2012

Widespread overhauls are needed to improve practice in the British banking industry, a financier believes.

Virgin Money has submitted a document to the Parliamentary Commission on Banking Standards, in which it suggests measures such as a more stringent approach from regulators on the capping of banker pay, Sky News reports.

Also included in the company's far-reaching proposals is the idea to fully separate the retail and investment divisions of financiers in order to accelerate reforms in the sector.

Virgin - which bought state-backed Northern Rock - believes urgent changes are required in the industry in order to restore its ailing public reputation while also levelling the playing field for new firms entering the market.

Indeed, the financier went on to call for the "full professionalization" of the banking industry, adding that there appears to be a need for shareholder-supported "regulatory parameters for bonuses and total remuneration" in the aftermath of the global crisis.

By Asim Shah

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