Christine Lagarde has called for stronger individual accountability for law-breaking and misconduct in banks.

The managing director of the International Monetary Fund criticised the assumption that fines are simply the “normal cost of doing business”,

She noted that the brunt of corporate malfeasance has been born by bank balance sheets. “A rogue trader might think it’s ok, it’s in the books, provided for.”

From the board to the trading floor, a culture of individual “virtue and integrity” is needed, pointing to the ethical oath Dutch bankers now take.  I swear within the boundaries of the position that I hold in the banking sector

• that I will perform my duties with integrity and care;
• that I will carefully balance all the interests involved in the enterprise, namely those of customers, shareholders, employees and the society in which the bank operates;
• that in this balancing, I will put the interests of the customer first;
• that I will behave in accordance with the laws, regulations and codes of conduct that apply to me;
• that I will keep the secrets entrusted to me;
• that  I will make no misuse of my banking knowledge;
• that I will be open and transparent, and am aware of my responsibility to society;
• that I will endeavor to maintain and promote confidence in the banking system.

“We need a culture that holds individuals accountable,” she said, arguing that strong criminal and civil action must be taken to act as a deterrent.