Barclays' new chairman has told MPs that banks must prioritise reputation over profits if they are to overcome cultural problems across the industry.
Sir David Walker criticised banks for paying staff sales-based commission, and suggested that he was planning to overhaul remuneration at Barclays.
"If anyone in the organisation faces any decision that he or she is taking in relation to a client and there's a choice between profit and reputation it's clear where priority should be given," he said.
"Reputation should be the driver and profit should come second in any choice.
"I would start by changing the remuneration structure and inappropriate incentivisation."
His comments echoed those of Barclays' new chief executive Antony Jenkins this week.
A change in banking culture was possible and should be "accomplished rapidly", Sir David said, adding that there is now a new focus on culture by banks' boards.
He stressed that the industry's integrity had been battered by a race for market share and too much focus on short-term profits.
"Making quick returns and keeping abreast of competition overtook old-fashioned concerns about integrity," he said.
Sir David was the first witness to be called in front of the Parliamentary Commission on Banking Standards joint committee - set up in the wake of the Libor-fixing scandal .
Barclays is battling to recover from a number of scandals, including fixing the Libor inter-bank lending rate and mis-selling insurance policies.
He will take over from Marcus Agius as Barclays chairman on November 1.
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