In this context, the Reserve Bank has been issuing instructions on corporate governance. For example, the compensation guidelines for whole time directors, CEOs and material risk takers of banks have also been substantially modified.
To do so, they have to act as agents for at least two parties: savers and investors. However, for the bank to be able to act as an agent, both parties have to trust the bank. Trust – this is one of the most important factors in the banking sector. Without it, banking as we know it would be difficult, if not impossible.