Reports (or should that be leaks) suggest the Queen’s Speech on Wednesday will include a new statutory code of conduct on bank lending.

The code is expected to require lenders to give customers specific notice if they plan to withdraw or alter credit and leave banks open to fines if they do not treat customers fairly.

And a proposed Banking Reform Bill would include measures to allow the Bank of England, Treasury and FSA to intervene earlier to prevent another bank crisis.

The bill was introduced early and has already started its passage through Parliament, with some reports suggesting it will include extended powers to take other financial businesses into public ownership.

The Queens Speech is part of the ceremony that marks to state opening of a session of Parliament. The Queens Speech is written by the Government and lists the acts and measures to be introduced by the Government during the next session of Parliament. The differences between the UK’s Parliamentary system of Government and the US Presidential system are considerable, but often obscured by the role of the Monarch. The Queen may be making the speech but the Government has written it and it is the Government that writes the agenda and introduces the bills and acts.

In a Parliamentary system the Government rules by getting acts passed in Parliament and has no executive power once the party is not able to control a majority in Parliament. We can expect many individual MPs to try to get amendments passed that will be more consumer orientated than the government would prefer, the government’s ability to control the agenda will depend on its perceived political strength and ability to keep a consensus in the party.