As they say in football, it's been a "make or break" week for British banking. With a judgement in the Supreme Court on Wednesday on the legitimacy of the OFT's investigation into overdraft charging and today's Walker Report into corporate governance for the banking sector, it has been a defining period for the sector.

And on balance the banks seem to have got away rather lightly. The Supreme Court effectively killed the investigation into overdraft charges, while Sir David Walker's proposals—most of which will be adopted by the government—are not as tough as some in the sector feared. They have certainly softened since Walker's draft proposals were published in the summer. Indeed many early responses to the report from senior bankers have verged on the positive.

On the headline grabbing part of the Report—its requirement for greater transparency on bankers' pay—Walker himself predicted there would be "howls of outrage" from the industry. He may be right. Some will howl, but more sensible bankers will appreciate that requirements such as board-level remuneration and risk committees are merely a formalising of common sense. Some outside observers may be surprised to learn that such committees didn't already exist.

Walker stepped away from a complete "name and shame" approach to the sector's highest earners, instead opting to allow banks to publish information on pay in bands of £5m. More controversially, he has also demanded that bonuses be deferred for three to five years. That will cause the odd howl of discomfort in the Home Counties, but it will be met with widespread cheers elsewhere. There will be complaints that these requirements are more onerous than those in place in other world markets and will therefore disadvantage London. But there will be no flight from the City.

The brighter parts of the banking community recognise that this is no time for business as usual. The smarter chief executives realise this has been a big week. Hopefully it will encourage them to think beyond their highest-flying employees and attend more diligently to the needs of other stakeholders. Customers, shareholders and other employees all need equal consideration. They could start by following the example set by Santander, which announced that Abbey customers who also have a mortgage with the bank won't be charged for overdrafts. It's a small, but timely, step in the right direction. The banker's season may be saved after all.

Richard Cree

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