Second, a lack of trust negatively impacts on the relationship between regulators and banks. The interaction tends to become more adversarial. Regulators become less willing to listen to bankers and to take their views on how to do business into account. Third, a lack of trust in some banks and bankers usually translates into a negative sentiment towards the entire industry.
The Reserve Bank is examining some of the prudential conditions that can be relaxed without compromising systemic stability. Financial market infrastructure 29. As I mentioned earlier, the considered view of the GFC is that it is not so much the derivative products that are to be blamed but the infrastructure for trading and the risk management and regulations of the institutions.