In its 2015/16 business plan, the FCA said it would look into whether the culture in retail and wholesale banks was driving the right behaviour.
The focus would be on wages, appraisal and promotion decisions of middle management and how concerns are reported and acted on.
A BoE spokesperson said: “The Bank of England had no influence or role in the Financial Conduct Authority’s decision to drop its thematic review on culture and it would be wrong to suggest otherwise.
“The Bank of England has consistently raised issues around banking culture and over the last year has completed its review into fair and effective markets and introduced rules on the Senior Managers Regime and bankers’ bonuses which aim to improve accountability across the sector.”
In a statement, the FCA said it was scrapping the review as it became aware the Banking Standards Board had begun looking into the same issues, and did not want to ‘duplicate that work’.
It also stated that it became clear after analysing information from certain banks that each has, and needs to have, its own approach.
Last week, Treasury Select Committee Andrew Tyrie said the regulator’s move to stop the review and instead work with individual banks was ‘odd’.
The FCA’s acting chief executive, Tracey McDermott, and chairman, John Griffith-Jones, will now stand before the committee to face questions on their decision.
Early last week the regulator decided not to subject HSBC to a formal investigation regarding the part it played in helping clients evade tax.
