Learning Objectives:

• Understand the ethical and professional standards in banking.

• Identify and manage conflicts of interest.

• Promote a speak-up culture and whistleblowing.

7.1 Professional Ethics in Banking

Ethics in banking ensures fair practices, transparency, and accountability, promoting trust, corporate governance, and responsible banking for sustainable growth . Professionalism is a commitment to a code of conduct, continuing professional development, and acting in the public interest . Ethical behavior is a fundamental principle of banking training programs .

7.2 Treating Customers Fairly (TCF)

The principle of Treating Customers Fairly is central to banking regulation . It requires that customers are provided with clear, accurate information, products and services meet their needs, they receive a standard of service that meets their needs, and complaints are handled fairly and promptly .

7.3 Managing Conflicts of Interest and Whistleblowing

A conflict of interest arises when a banker’s personal interest interferes with duties to the bank or its customers . Banks manage conflicts through mandatory disclosure, recusal from decision-making, and strict prohibitions on insider trading . Creating a culture where employees feel safe to “speak up” about wrongdoing is a critical control to prevent misconduct and protect customers .