The Reserve Bank of Australia has slammed the culture prevalent in the banking sector, saying trust in the industry has been '"strained".
"On trust, it's fair to say that trust in banking has been strained," RBA Governor Philip Lowe has told the federal parliament house economics committee, adding it was also fair to say service has taken a back seat to sales in the banking sector.
Australian banks have by-and-large done okay on risk management, Dr Lowe said, but said there are examples where desire for short-term profit has probably led to not enough attention being paid to risk management issues.
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