Additionally, equity markets are a source of investment capital, and valuations in the stock market are one determinant of the cost of capital for businesses.
It is good to note in this connection that remuneration systems and principles of good governance are now receiving increased attention from shareholders. They have been impressively active in the votes on remuneration reports at the AGMs of a number of European and US banks in recent months. Clearly, the era of the sound, trustworthy, respected banker is actually not quite over.