UPDATE 2-UK bank standards body confident of international support

* Chairwoman expects majority of international banks to join

* Says feedback from international banks positive

* Treasury official Cottrell appointed chief executive

* New body will set out to improve standards within industry (Recasts, adds interview with chairwoman)

By Matt Scuffham

LONDON, Jan 13 (Reuters) - International banks operating inLondon are expected to support a new organisation set up lastyear to improve standards of behaviour at banks in Britain, itschairwoman said.

The Banking Standards Review Council (BSRC), created toreview practices in an industry that has been rocked bymis-selling and rate-rigging scandals, has the backing ofBritain's six biggest banks. But it has yet to secure thesupport of large international banks based in London, seen askey to its credibility. The BSRC is funded by the banks but willoperate independently of them.

Chairwoman Colette Bowe said she was confident that supportfrom international banks would be forthcoming.

"Everybody is expressing an interest in support so I'm quiteconfident about that," she said in an interview with Reuters onTuesday. "We're getting very good feedback from theinternational banks. Everybody knows the importance of this.It's quite clear."

Some U.S. banks are reluctant to sign up because ofuncertainty about legal risks if their staff fall short of a newindustry code of conduct to be established by the BSRC, industrysources said.

The banks have also questioned whether it overlaps withexisting British financial regulators including the FinancialConduct Authority which has responsibility for discipliningbanks for wrongdoing in Britain.

Iain Coke, head of financial services at accounting bodyICAEW, urged international banks to join the new organisationand British banks to be more vocal in their backing.

"The lack of support from some international banks, togetherwith the relative silence from UK banks could be a cause forconcern," he said.

Bowe said the role of the BSRC would be to help banksimprove standards rather than compete with the role of theregulator.

"The BSRC isn't a regulator. Ultimately if things are goingto change in this industry it's for the people who work in theindustry to make the changes," she said.

The BSRC on Tuesday appointed UK Treasury official AlisonCottrell as its first chief executive.

Cottrell, who will take up her post in April, has beendirector of financial services at Britain's finance ministrysince 2009, with responsibility for policy areas includingpromoting competition in banking. Prior to that, she worked asan economist for HSBC and PaineWebber.

The BSRC will publish a 'state-of-the-sector' report laterin the year. (Editing by Keith Weir and Jane Merriman)