Halifax boss says it could take "a generation" before people trust banks again

Lloyds and the other leading banks could face decades before the public trust them again

Lloyds and the other leading banks could face decades before the public trust them again

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​It could take a generation to restore public confidence in UK banks after a series of scandals, Lloyds' chairman told delegates at the Banking Standards Board's inaugural conference. ​

​Lord Blackwell said that ​it will take four years before bank workers feel proud of their job again and that "the public trust might take a generation to re-establish".

Lord Blackwell said that it will take four years before bank workers feel proud of their job again

Lord Blackwell said that it will take four years before bank workers feel proud of their job again

Lloyds, which bought Halifax Bank of Scotland at the height of the banking crisis, is one of 31 lenders that have signed up to the Banking Standards Board, the independent body that was set up last year to promote higher standards of behaviour in banking after the PPI, rate rigging and money laundering scandals eroded public trust in UK banks.

The board's chairman Dame Colette Bowe, the former Ofcom chairman, told delegates in London that "there is a long way to go" before the public trust banks again.

"However the leaders of some of the biggest institutions have made a start. We are still at the foothills, but I am moderately encouraged. It's the beginning of a longish road," she said.

Sir Gerry Grimstone, deputy chairman of Barclays, said he was more optimistic than Lord Blackwell about how long it will take to restore public trust, but didn't give a prediction how many years it might take.

"There are still a lot of legacy issues. The drumbeat of the fines will go on for a couple of years."

Sir Gerry said that the public perception of UK banks has been affected by the bonuses paid out to directors.

"Remuneration has got far too complicated," he told delegates, adding that directors' bonuses should be share based and should be held for a long period of time, between five to ten years, to ensure that directors are incentivised.

Antonio Simoes, chief executive of HSBC Bank, said that in some areas public sentiment has gone backwards and shareholders need to take a longer term perspective.

"The average investor holds stock for just 200 days. We need a longer term perspective form our shareholders.

"When staff say they are proud to be working in banking, something will have changed."