Walker Report finds the right targets

The Walker Report is right to focus on changing the patterns of behaviour within boards and on substantive improvements to financial firms' corporate governance, the British Bankers' Association said today.

Sir David Walker's report into corporate governance in the finance industry was right to address the way board decisions are made, emphasising the need for real challenge, closer attention to board composition and a greater time commitment from non-executive directors, who should have financial industry experience and be able to demonstrate independence of mind. Shareholders should be active participants in the companies they own, and not merely passive investors.

BBA chief executive Angela Knight said: "Sir David Walker received widespread support from the many changes already taken place since interim report - indeed the industry is already adopting his early recommendations on board composition and responsibilities.

"The UK continues to show the way on reform, which means we now need the international community to take up his recommendations, particularly on the disclosure of pay packages for senior staff. The banks have heard the call to publish this information, but they also see the risk in doing so, given that too many countries show no sign of following suit. The UK is a large international centre and it is essential that other countries make the same changes at the same time."