Banks need to rebuild trust, Carney says
Bank of Canada governor Mark Carney says it will take more than tough new regulations to restore trust in the banking system in the wake of the financial crisis.
In a speech at Western University in London, Ont., Carney says the financial reforms by the G20 will go a long way, but will not be enough.
Since the financial crisis, several major global banks have faced allegations of manipulating key financial benchmarks, money laundering and unauthorized use of client money.
Carney says bankers need to re-discover their core values and see themselves as custodians of their institutions.
He points out that reduced trust in the financial system increases the costs and lowers the availability of borrowing for non-financial companies.
The former Goldman Sachs investment banker also heads the Financial Stability Board where he has responsibility for overseeing global financial reforms. He is leaving the Bank of Canada later this year to become governor of the Bank of England.