António Horta-Osório, chief executive of Lloyds, says banks should start being "boring" in order to restore trust in the industry, according to The Telegraph.
As banks come under increasing pressure from the Financial Services Authority (FSA) to end bonus schemes that could encourage mis-selling, Mr Horta-Osório claims banks have "focused too much on sales targets".
Speaking at the annual dinner for the CBI (Confederation of British Industry) Scotland, he said: "The banking industry has done itself no favours. Issue by issue and scandal by scandal, the faith and trust in our industry has been eroded." He added: "The industry must change. We must recast the banking model [...] retail and commercial banks should be simple and they should be boring."
Under Mr Horta-Osório's lead, Lloyds has openly supported separating high street banking from investment banking. He says the bank will implement this before the 2019 deadline for all banks. It has also set aside some £4.2 billion for claims on mis-sold payment protection insurance.
The 'ring-fencing' of high street banking was proposed by the FSA in order to help prevent a repeat of the problems many banks have faced in recent years. It will aim to ensure that the money in people's bank accounts is not used to fund investment banking.