Bishop, lawmaker and equality campaigner recruited to raise UK bank standards

By Steve Slater

LONDON, April 2 (Reuters) - A bishop, a senior lawmaker anda human rights campaigner have been picked for a 14-strong boardaiming to push Britain's banks to improve standards after aseries of scandals.

The Banking Standards Board (BSB) on Thursday unveiled apanel including five bankers and nine people from outside theindustry to review practices after confidence in banks has beenrocked by mis-selling and rate-rigging problems.

The BSB will be funded by banks but will operateindependently as it seeks to raise standards and rebuild publictrust through a voluntary code of conduct. The board, which isnot a regulator, has been set up on the recommendation of a 2013government review of the banking sector.

"Trust in the system has been badly damaged and it's nosurprise that the public expects change after everything thathas happened," said Colette Bowe, the former telecoms regulatorwho was appointed chairman of the BSB in October.

"Banks recognise the urgent need to raise their game andbuild the necessary momentum for change. It won't happenovernight and it will be an uncomfortable journey, but the timehas come to win back trust."

Bowe said the board had been picked to shine a spotlight oncompetence, culture and patterns of behaviour across retail,investment and commercial banking.

It includes John McFall, the former Labour MP who headed theinfluential Treasury Select Committee and still deals withfinancial issues now he is in the House of Lords.

It also includes Brendan Barber, the former generalsecretary of the TUC trade union body who now chairs employeearbitration service ACAS.

Onora O'Neill, a member of the House of Lords and chair ofthe UK's Equality and Human Rights Commission, is anothermember, along with David Urquhart, the Bishop of Birmingham whois the Archbishop of Canterbury's envoy to China and previouslyworked at oil major BP.

UK Treasury official Alison Cottrell will join later inApril as the BSB's first chief executive.

The five bankers on the board include HSBC's UKchief Antonio Simoes, Citigroup's UK boss James Bardrickand Morgan Stanley International Chief Operating OfficerClare Woodman.

The BSB will this year outline the progress of banks inimproving standards and highlight any shortcomings.

Britain's banks are backing the BSB, which will reportpublicly on its findings. It has also received the support ofU.S. banks Citigroup and Morgan Stanley, although someinternational lenders voiced reluctance to join, industrysources have said. (Editing by David Goodman)