The U.K. government has launched a review of corporate governance practices in the banking sector, saying this “first line of defense” had failed to hold executives to account.

The review will look at board-level risk management, the effectiveness of audit committees, whether remuneration policies encourage excessive risk-taking, the levels of skill and experience on bank boards, board practices and structures, and the role played by institutional shareholders.

The review will be chaired by Sir David Walker, who last year led an industry working group that drew up a voluntary code to improve levels of disclosure in the private equity industry.

Chancellor Alistair Darling has told Walker to “make recommendations for improving what should be the first line of defense.” He added: “It is clear that corporate governance should have been far more effective in holding bank executives to account.” Walker will report his conclusions in the fall and make recommendations by the end of the year.

Opposition politicians criticized the move, calling it a ploy to sideline a row about the scale of executive bonuses paid by banks that have been rescued with taxpayers’ money.