Osborne backs tougher rules for banking industry

UK chancellor of the exchequer George Osborne has backed tougher rules for the banking industry, including legislation to jail reckless bankers and giving regulators the power to defer bonuses for as long as 10 years.

In its response to the recommendations of the Parliamentary Commission on Banking Standards, the British government said yesterday it plans to implement the main findings, with new laws if needed.

“Cultural reform in the banking sector marks the next step in the government’s plan to move the whole sector from rescue to recovery and ensure that UK banks demonstrate the highest standards, and are able to support business and drive economic growth,” Osborne said in a statement.