Essay on Ethics And Ethics Of The Banking Sector

1548 Words Jul 23rd, 2016 7 Pages
Recent financial history is littered with crisis and scandal, which has led to a fall in confidence and trust within the banking sector. From breaches of money laundering regulations by leading banks to allegations of corruption and illegality, regulators and business leaders have contributed to the, ‘cultural and ethical failures’ in the banking sector. Such incidents have resulted in an overhaul of the financial sector’s policies and a promotion of a more ethical culture across the board. There is a realistic expectation that there are limits to financial law and regulation, and instead, greater chances of success lie with the changes in culture and ethics, which ‘play an important role in the governance of financial service firms’ . One of the ways in which corporate law works to create trust and integrity is to impose liability upon directors when fail to take the required due care and attention, and higher standards of care have been imposed in the UK in order to deter directors with the threat of liability.
Changes to financial institutions have been witnessed across the banking world, but the overreaching aim in all countries has been to create a financial industry with improved ethics and a culture, which promotes trust and integrity. Following the global financial crisis, the challenge was to ‘design and implement an institutional architecture that has sufficient flexibility to withstand further pressures’. Rebuilding trust became the central objective of the…

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