7  Limiting risk-taking incentives  Before the crisis, implicit guarantees created moral hazard. It is here that the root cause of the loss of public trust suffered by the banks is to be found. Thus, the ultimate reason was an inadequate overall organisational framework which set up the wrong incentives.
In this context, profit targets were announced which now look “unrestrained” or “greedy” but which at the time investors demanded – with support at the end of the day from an inadequate overall organisational framework. And the false incentives led banks to lose touch to an ever increasing extent with traditional banking services. Banks lost a sense of reality.