The Institute of Directors has welcomed the creation of a ‘New Bank Start-up Unit’ to make it easier for challenger banks to enter the market, and re-iterated the importance training plays in the development of senior executives and non-executive directors.
Oliver Parry, Senior Corporate Governance Adviser at the IoD, said:
“The IoD welcomes today’s announcement by the PRA that the ‘New Bank Start-up Unit’ has been established to give information and support to newly authorised banks. It is important that new banking entrants are given the relevant support and guidance when looking to establish a footprint in the UK market. As both MetroBank and Aldermore have proven, it is possible for new banks to establish themselves, but the success rate needs to improve.
“Today’s announcement also makes clear that new banks will benefit from ‘seminars targeted at new and prospective banks and separately banks’ senior management.’ However, more attention should be given to training and development of NEDs, especially those who may not have sat on the board of a financial services company. The IoD has long campaigned on the importance that training plays in the professional development of the NED community. This is even more important in banking where both boards and compliance teams face a deluge of new regulations. The IoD stands ready to work with the banking community to support and help nurture its NEDs as well as looking to implement high standards of a corporate governance from the outset, something which is integral for the growth and long term investment of any company, let alone a bank.”