·The last surviving industry-level model of self regulation
· Sets the standard for how financial institutions treat their customers on a daily basis
· Anniversary year sees the triennial independent review of Code

The banking industry today (16 March 2007) marks the 15th anniversary of the Banking Code - a voluntary code that sets the standards of good banking practice for financial institutions to follow when dealing with personal customers in the UK.

The Code provides valuable protection for customers and explains how financial institutions are expected to deal with them day-to-day and in times of financial difficulty. It sets out clearly the obligations for both banks and customers, but is flexible so it can respond to emerging and changing consumer and business needs.

The Banking Code is owned by the British Bankers’ Association (BBA), the Building Societies Association (BSA) and APACS, the UK payments association. Subscribers’ compliance is enforced and monitored by the Banking Code Standards Board (BCSB). Whilst it is a form of self-regulation it remains under constant scrutiny from regulators, legislators and consumer groups - a key element of its strength.

The Code is formally reviewed every three years by an independent external reviewer who takes into account the views and opinions of a wide range of stakeholders, not just those directly involved in financial matters. 2007 sees the third independent review being carried out; by Mike Young, an independent consultant.

Improvements made to the Code during the 2005 review included the Summary Box on credit card agreements; more notice when the last bank branch in a community closes; and better treatment for customers in financial difficulty. New rules were also put in place to make it easier for people to get money from forgotten bank accounts.

This year’s review, with will be effective from March 2008, is expected to conclude with even more improvements - particularly focusing on the areas of fraud liability, responsible lending and dealing with customers in financial difficulty.

Angela Knight, Chief Executive Designate of BBA, said:
“Whether they’re saving or borrowing, customers deserve a fair, transparent and responsible service. As one of the three trade associations sponsoring the Banking Code we are proud to be celebrating its 15th birthday.
“The members of our three trade associations include banks, building societies and credit card issuers so we see the issues that are affecting our customers and we see how the industry responds. The Banking Code gives us a way of setting real obligations and real benefits for customers - whilst keeping the system flexible and competitive enough to respond to changing customer and business needs.”

Adrian Coles, Director-General of BSA, said:
“We remain proud of what building societies and banks have achieved over the last fifteen years of the Banking Code. Looking forward, I am sure it will continue to develop in response to consumer needs, providing protection and ensuring confidence in the industry.
”The fact that our regular review falls during this anniversary serves to highlight how the Code continues to improve and is open to scrutiny from a wide range of stakeholders.”

Paul Smee, Chief Executive of APACS, said:
“The industry is committed to customers knowing about and understanding the real benefits and protection that the Code offers them. Not only is it a stellar example of self-regulation but the guarantees offered by the Code puts the UK head and shoulders above the position in other countries.”

Robert Skinner, Chief Executive of the BCSB, said:
“The 15th anniversary of The Banking Code is a cause of celebration for us. It shows that our role of monitoring compliance and enforcing the Code is working and we welcome the opportunity to enhance our effectiveness through the review process.”

Notes to editors

For further information contact:
· Brian Capon, British Bankers’ Association - (t) 020 7216 8810 / (m) 07860 682215 /
brian.capon@bba.org.uk

· Rachel Snow, Building Societies Association - (t) 020 7440 2218 / (m) 077 66 33
2164 / rachel.snow@bsa.org.uk

· Sandra Quinn, APACS - the UK payments association - (t) 020 7711 6234 / (m)
07768 044 656 / sandra.quinn@apacs.org.uk

· Robert Skinner, Chief Executive, Banking Code Standards Board - (t) 020 7012 0082 / robertskinner@bcsb.org.uk

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 launched in December 1991 and took effect from 16 March 1992. 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.

APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. In a nutshell we help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as direct debits, salary payments and online/phone transactions. We also champion the fight against banking fraud and are the people who have been working to give consumers greater card fraud protection by introducing chip and PIN. Twice a year we publish figures on banking fraud losses.

The British Bankers’ Association (BBA) is the principal trade association for banks operating in the UK. It has 218 member banks and many professional associate members. BBA member banks collectively employ over 400,000 staff in the UK.

The Building Societies Association is the trade association for the UK's building societies. There are 62 building societies in the UK with total assets of over £270 billion. About 15 million adults have building society saving accounts and over two and a half million adults are currently buying their own homes with the help of building society loans.