Recovery depends on banks re-establishing trust with public: Carney

TORONTO – The head of Canada’s central bank says economic recovery can only happen if banks can rebuild the public’s trust.

Speaking at a lunchtime panel discussion at the Toronto Board of Trade, Bank of Canada governor Mark Carney said there was a “fundamental loss of trust” following the recent global financial crisis.

He said the big banks lost their way when they placed greater value on their relationships with other banks and regulators than on their clients, the general public.

He said governments also need to strike a balance, to ensure that banks hold enough capital but aren’t too big that they feel like they can’t fail.

Meanwhile,Carney called on bankers to revisit their “core values” and remember that they are “custodians” of their institutions, rather than big businesses only interested in profits.

The discussion, titled Banking, Trust and the Culture of Capitalism, continues with speeches by business author Roger Martin and Convivium editor-in-chief Rev. Raymond De Souza.