How to Restore Public Trust in Banking

Doctors have the Hippocratic Oath and lawyers have the Bar, yet bankers have nothing but their word. And that just isn’t enough anymore. The economic costs and fines related to irresponsible banking activity between 2008 and 2015 total almost US$8 trillion. In this article, the former president of BMO Capital Markets offers recommendations on how the industry can earn back public trust. First, bankers need to realize the importance of their actions. They have responsibilities as leaders within an industry that is the lifeblood of both the global economy and society. Second, consistency and a demand for high standards across all asset classes and markets must be expected at a bare minimum. Third, bankers need to remember that larger forces continually shape their industry and should help more to deal with the contagion caused by volatile markets. Fourth, while bankers must be transparent about the industry’s challenges, they should also highlight its successes. Finally, bankers should make sure to leave the industry in a better condition than they found it.