Taylor told HR magazine the recent dismissal of eight Lloyds staff for Libor rigging, along with the withholding of around £3 million in bonuses, shows the industry is "making a real effort to shift its culture".
He added that a move to distance banking from the bonus-led culture is a "step in the right direction".
"If there are strong incentives to cheat the system people will be expected to do so," he said. "The sackings at Lloyds show there is an appetite for regulation and reform – which is welcome."
There is also strong societal pressure for banking to reform, according to Taylor.
"Bankers don't want to have this poor perception hanging over them," he said. "Nobody wants to be thought of in the same way as estate agents."
Taylor says he has "high hopes" for the impact of changes to banking regulations, including a requirement for bankers to act in an ethical way.
"Only time will tell how much effect these changes have, but I really think we will see a shift in the culture and changes to behaviour. Bankers want to reform themselves, partly to avoid facing draconian regulation from outside the industry if they fail to act."
