By Jonathan Davies

It will take a generation to change the banking culture in the UK, according to a report from new think tank.

A joint study by Cass Business School and think tank New City Agenda said that the "toxic" and "aggressive" culture led to various scandals, including PPI mis-selling.

The report suggests that banking industry has lost £38.5bn in fines and compensation over the last 15 years. At least £27bn of that figure came from compensation relating to the mis-selling of PPI.

Between 2008 and 2014, banks received 21 million complaints over PPI.

"A toxic culture which was decades in the making will take a generation to turn around," said Conservative MP and New City Agenda co-founder David Davis.

Archbishop of Canterbury Justin Welby, a member of New City Agenda, said: "It is clear that much more needs to be done by all stakeholders for trust to be restored in our financial institutions."

The report's main author, Professor Andre Spicer, of the Cass Business School, said some progress has already been made.

Professor Spicer said: "Regulation has improved, and big banks have all implemented new programmes to improve their cultures.

"Smaller banks and challenger banks are beginning to offer the customer real choice, and often have healthier cultures.

"Many culture-change initiatives are fragile, and their success is not ensured. It's clear to us that much work still needs to be done."

The British Bankers' Association (BBA) said: "There has been some important headway, with a new regulatory system, important reforms to pay and measures to ensure the British taxpayer will not have to shore up struggling banks in the future.

"It's very important that public confidence in this vital part of our economy returns, but that takes time and there is still more to be done."

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