Joanna Elson, of the BBA, says that the banking code standards board, made up of independent experts, found “certain problems with lending”.

The changes included alterations to the presumed responsibilities of lenders to ensure their clients are responsible with the money they borrow needed to be made now rather than waiting for legislation, she added.

“This is the main benefit of self regulation over statutory regulation – it is much quicker than waiting for a law to be changed,” Ms Elson continued.

“Changing the banking code is a regular cycle every three years, when an independent expert consults and makes recommendations.”

Ms Elson concluded that the banking code was a vital part of the way banks do business, as by the time legislation has been altered to incorporate the board’s recommendations, “circumstances could well have changed anyway”.

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