Mr. Ed Sibley:

If one puts similar people in similar circumstances and asks them to make similar decisions, there are likely to be similar outcomes, which is why we have focused on both culture and diversity for a number of years. In addition, as part of the responses to our work and plans on culture, we have required the banks to revert to us and tell us what they are doing to enhance diversity, at not just the board level but also that of the executive and the layers below that, but that takes time. We can see there have been some incremental improvements across the financial system and, in particular, in banking. When the CEOs appear before the committee, members will see there are different faces and a bit more diversity. In the case of those who lead the revenue generation parts of their businesses, however, such as the chief financial officers, who drive the business forward, one will typically see similar people.

We are continuing to drive, therefore, to enhancing significantly the level of diversity in financial institutions in order that there will be people with different views and that we will prevent groupthink. If there is to be real, visible cultural change, what the banks and other institutions espouse about being customer focused, needs to be demonstrated in decision making, including on the topics we have discussed, such as front book and back book pricing on mortgage loans. That is something the committee could usefully discuss when the CEOs appear before it.