The Institute of Bankers is to introduce a new ethics in banking course as part of its efforts to restore public confidence in the sector.

Addressing its annual general meeting last night, incoming IBF president - Ulster Bank chief executive, Mr Martin Wilson - said the financial services sector has a responsibility to provide clear leadership and guidance to ensure its actions are beyond reproach. Referring to last year's DIRT inquiry which investigated the wide-scale abuse of non-resident accounts throughout the banking sector in the 1980s and 1990s, Mr Wilson said compliance with statutory legislative and regulatory requirements must become the absolute minimum standard for banks. "In every interaction we have, whether it be with our customers, staff, suppliers or indeed any other stakeholder, we have to be seen to live up to these standards."

The ethics in banking course will be available to IBF students next year. Mr Wilson said that by working together over time, the banking industry will be able to restore the mutual trust and public confidence on which banking and financial services are founded.

He also referred to the responsibility which banks must be prepared to shoulder in ensuring that the economy's long-term growth prospects are not damaged by over lending.

Mr Wilson stressed that while the medium term growth prospects and economic fundamentals for the Irish economy remain positive, banks must not lose sight of the potential of overheating or unexpected shocks which could radically change the economic landscape.

"We should remain vigilant. We should maintain a conservative approach, focussed on traditional lending principles rooted in cashflow and repayment capacity and not get drawn into pawnbroking against inflated asset values."

The sector must play its part to guard against overheating pressures and ensure that any slowdown is "soft", he told the meeting.