Inquiries Bingham Inquiry (BCCI) ReportedHistoric

Inquiry into the Supervision of the Bank of Credit and Commerce International

Bingham Inquiry (BCCI)

Non-statutory inquiry into the Bank of England's supervision of Bank of Credit and Commerce International (BCCI) following the bank's collapse in July 1991 amid revelations of massive fraud.

Read the full description

Non-statutory inquiry into the Bank of England's supervision of Bank of Credit and Commerce International (BCCI) following the bank's collapse in July 1991 amid revelations of massive fraud. Concluded that the Bank's supervision was "a tragedy of errors, misunderstandings and failures of communications" and recommended stronger statutory duties for auditors and improved communication between supervisors.

Where it stands

Report of the Inquiry into the Supervision of the Bank of Credit and Commerce International was published on 22 October 1992.

ChairLord Justice Thomas BinghamJudge / Judiciary
Commissioned byHM Treasury
Established19 Jul 1991
Final report22 Oct 1992
Duration1 year, 3 months
Inquiry report
Historical inquiry (pre-Inquiries Act 2005). Listed for reference; recommendation progress is not actively tracked.

Reports & recommendations

Reports →
  • Report of the Inquiry into the Supervision of the Bank of Credit and Commerce International22 October 1992

Legacy & Impact

The Bingham Inquiry examined the supervision of the Bank of Credit and Commerce International (BCCI) following its collapse in July 1991, when regulators in 69 countries simultaneously closed what was then the largest bank failure in history. Lord Justice Bingham's report, published in October 1992, found that the Bank of England had been too cautious and deferential in its supervision, and that international regulatory cooperation had been inadequate for overseeing a bank operating across multiple jurisdictions.

While the inquiry made no formal recommendations, its findings informed significant reforms to UK banking supervision. The Bank of England Act 1998 transferred banking supervision from the Bank of England to the newly created Financial Services Authority, addressing concerns about the Bank's dual role as both monetary authority and banking supervisor. The Financial Services and Markets Act 2000 established the FSA as a unified financial regulator, with the BCCI failure cited as one of several regulatory failures that demonstrated the need for consolidated supervision.

The inquiry's findings also contributed to international regulatory developments, particularly the Basel Committee's Core Principles for Effective Banking Supervision published in 1997. These principles established global standards for banking supervision and cross-border regulatory cooperation. The UK's approach to banking supervision underwent further reform following the 2008 financial crisis, with the Financial Services Act 2012 abolishing the FSA and returning prudential supervision to the Bank of England through the Prudential Regulation Authority.
Lasting Reforms
• Transfer of banking supervision from the Bank of England to the Financial Services Authority through the Bank of England Act 1998
• Creation of the Financial Services Authority as a unified financial regulator under the Financial Services and Markets Act 2000
• Contribution to the Basel Committee's Core Principles for Effective Banking Supervision (1997), establishing international standards for banking supervision
• Enhanced international regulatory cooperation frameworks for supervising banks operating across multiple jurisdictions
• Strengthened anti-money laundering frameworks in UK banking regulation
Reforms Reversed or Weakened
• The Financial Services Authority was abolished in 2013 and banking supervision returned to the Bank of England through the creation of the Prudential Regulation Authority under the Financial Services Act 2012
Unfinished Business
None identified - the inquiry made no formal recommendations
Summary written by the tracker with AI assistance, 26 March 2026. Not part of the inquiry record; indicative, not authoritative.

Key Legislation

Bank of England Act 1998 (Transfer of Supervision)
Transferred banking supervision from the Bank of England to the Financial Services Authority, partly informed by the Bingham Inquiry's findings on supervisory failures.
Financial Services and Markets Act 2000 PRIMARY
Created the Financial Services Authority as a unified regulator. The BCCI failure was one of the regulatory failures that informed the case for consolidating financial supervision.

Influence & Connections

Led directly to Financial regulation and banking supervision
The BCCI failure informed the transfer of banking supervision from the Bank of England to the FSA and contributed to international standards for banking supervision (Basel Core Principles, 1997).