Culture change needed in Irish banking - IBOA

A culture change is needed within Irish banking, according to the Irish Bank Officials' Association (IBOA).

The IBOA made the claim during a presentation to the Joint Committee on Finance and the Public Service on issues arising from AIB revelations.

According to IBOA general secretary, Mr Larry Broderick , the recent revelations surrounding AIB have infuriated bank staff. He added that the whole industry could become irrevocably damaged if the causes of the scandals remain unchecked.

"There appears to be one set of standards for 'ordinary' employees and a totally different one for senior executives," Mr Broderick said.

He blamed a culture of excessive profiteering and the hard-selling of products for the decline in ethics in Irish banking.

"The single greatest cause behind the various scandals to engulf Irish banking is an alien culture that puts profit above service and the customer, before ethics and the highest standards and before the welfare of staff," he said.

In their submission to the Oireachtas Committee the IBOA proposed a number of different measures restore confidence in Irish banking. These include a whistleblower charter, a review of human resource practices, reducing the dominance of performance-related pay, and representation for staff and customers on bank boards.

"If implemented [these steps] will prevent the reoccurrence of similar financial scandals in the future and restore international confidence in Irish banking," Mr Broderick concluded.