INSTANT VIEW - Reaction to bank governance proposals

LONDON (Reuters) - Following is reaction to a UK government-sponsored review of the way the UK banking system is run and governed.

David Walker, a former chairman of Morgan Stanley bank's international unit, on Thursday published 39 recommendations for changes in the way banks are run, from pay policies to selecting board members, in a bid to apply lessons from the credit crunch.

PRICEWATERHOUSECOOPERS (PWC)

"Care is needed if the UK is not to be put at a competitive disadvantage as a result of remuneration proposals.

"PwC welcomes the recommendations for NEDs (non-executive directors), however, identifying adequate numbers with relevant experience to fulfil roles may present, at least in the short term, a major challenge.

ANGELA KNIGHT, CHIEF EXECUTIVE, BRITISH BANKERS' ASSOCIATION

"These proposals added together make very substantial changes to the rules. The next step -- and the key step -- will be to get similar high standards adopted internationally."

PETER MONTAGNON, DIRECTOR OF INVESTMENT AFFAIRS, ABI

"Some areas need further consideration and clarification. In particular, we do not believe that the remit of non-executive directors should be extended into areas that should be performed by management.