An independent review of the Personal and Business Banking Codes will begin on Monday 13 November.  It will take views from all interested stakeholders and individuals on the content of the Codes, which set the standards of good banking practice for financial institutions in the UK. Revised Codes will be published in March 2008. 

Independent consultant Mike Young has been appointed to carry out the review. Mike replaces Professor Elaine Kempson who is now a director of the Banking Code Standards Board.

Mr Young will shortly be writing to all major stakeholders to request views on the Banking Codes. However, the consultation is open to everyone and details of how to take part can be found on each of the sponsors’ websites and the Banking Code Standards Board website. The period for submissions to the review will run until Monday 12th February 2007.

Mike Young said: “I am delighted to be appointed as independent reviewer for the Banking Code and Business Banking Code.  It’s important that the Codes are fair, workable and clear and I look forward to hearing the views from a wide range of stakeholders, including consumers, government and regulators as well as banks and building societies themselves.”

Adrian Coles, director general of the Building Societies Association said: "The Banking Code is an excellent example of self regulation.  Among the reasons it works so well is that compliance with the Code is assessed by the independent Banking Code Standards Board, and the contents of the Code itself are heavily influenced by an independent reviewer.  Mike Young, with his substantial experience at the Bank of England and elsewhere, is ideally placed to make recommendations to the sponsoring bodies that will improve the Banking Code even further."

Ian Mullen, chief executive of the British Bankers’ Association said: "The Banking and Business Banking Codes continue to be the benchmark in setting standards of good practice for banks and building societies to follow in the UK.  The banking industry is committed to ensuring that the Codes are independently reviewed every three years so they continue to be relevant for customers and reflect developments in the banking environment. Mike’s unique background encompassing small business and consumer groups as well as government will be invaluable in this role.”

Paul Smee, chief executive of APACS said: "The review of the Codes is integral to their continuing role of providing a transparent and agreed level of service that customers should expect from their banks and building societies. This is an opportunity to revisit the current content of the Codes to ensure that they provide adequate and appropriate protection for consumers and businesses."

Robert Skinner, chief executive of the Banking Code Standards Board said: Mike’s appointment will be welcomed by all stakeholders and we look forward to contributing to the Code review. We have already identified a number of areas for consideration in the review, including the provisions for the assessment of an individual’s ability to repay monies borrowed.

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Brian Capon, head of media relations, 020 7216 8810

Notes to editors

Mike Young is an independent consultant following his retirement as head of the small firms team at the Bank of England, a position he had held since 2001.  He was director of consumer and retail at the British Bankers’ Association between 1995 and 2001 and prior to this had held senior management positions at the Bank of England since 1973.

Mr Young is a member of the government’s Small Business Investment Taskforce and chair of its business angels group.  He also manages research contracts for the DTI Small Business Service.  Other roles include being a trustee of the Debt Advice Gateway Trust, and work for Young Enterprise, a charity providing business education in schools.

The Banking and Business Banking Codes are currently reviewed every three years. The last formal independent review of the Codes was conducted by Professor Elaine Kempson, who has since been appointed an independent director of the Banking Code Standards Board and therefore becomes ineligible for the position as independent reviewer.

The Banking Code is a voluntary code which sets the standards of good banking practice for banks and building societies to follow when they are dealing with personal customers in the United Kingdom.  As a voluntary code, it allows competition and market forces to work to encourage higher standards for the benefit of customers.  The first Banking Code was introduced in December 1991 and this was followed by the Business Banking Code in 2002.  The Banking Code is sponsored by the British Bankers’ Association, the Building Societies Association and APACS.

Compliance with the codes is monitored by the Banking Code Standards Board whose directors include a majority of independent members as well as representatives of financial institutions.

Further information on the review can be found at:

APACS:  www.apacs.org.uk

British Bankers’ Association: www.bba.org.uk

Building Societies Association: www.bsa.org.uk

Banking Code Standards Board: www.bankingcode.org.uk

Submissions to Mike Young should be addressed to:

Mike Young, Banking Code Review, c/o British Bankers’ Association, Pinners Hall, 105-108 Old Broad Street, London EC2N 1EX  Email: codereview@bba.org.uk