LONDON, Jan 31 (Reuters) - The bosses of HSBC,Barclays and Lloyds have been called totestify before UK lawmakers next week as an inquiry intostandards in banking intensifies after a string of scandals.
Britain's Parliamentary Commission on Banking Standards(PCBS) has this month switched its focus to standards andculture after spending most of the past three months assessingstructural reform.
It is likely to grill executives on mis-selling, pay andwhat is being done to improve risk management and culture thathave been shown to be flawed.
Lloyds CEO Antonio Horta-Osorio and Chairman Win Bischoffwill appear together before the panel on Monday, followed by newBarclays CEO Antony Jenkins and Chairman David Walker onTuesday. HSBC CEO Stuart Gulliver and Chairman Douglas Flintwill appear on Wednesday.
All three banks have had problems in the past year.
A $450 million fine for Barclays in June for rigging Liborinterest rates unearthed long-standing concerns at the regulatorabout its culture, and HSBC was fined a record $1.9 billion byU.S. authorities for weak anti-money laundering controls. Bothbanks have faced criticism they are too big and complex.
Lloyds has been slammed for too aggressively selling retailproducts, which has left it with a far bigger bill than rivalsfor compensating customers mis-sold insurance products.
All banks have been criticised for their PPI (paymentprotection insurance) sales policies - the industry may end uppaying more than 20 billion pounds in compensation - and banksmay have to pay out billions more after the UK regulator onThursday found they had mis-sold complex interest-rate hedgingproducts to small businesses.
Mark Carney, the future governor of the Bank of England, isalso likely to face questions on his views on banking standardswhen he appears before UK politicians next Thursday.