Carney Says Banks Should Regain Trust to Ease Economic Recovery

This article was last updated on April 16, 2022

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The soon to retire head of Canada’s central bank has stated that economic recovery will only regain its standard if banks successfully regain the public’s trust. Talking to a panel discussion on Friday at the Toronto Board of Trade, Bank of Canada governor, Mark Carney, mentioned that “to move to a world that once again values the future, bankers need to see themselves as custodians of their institutions, improving them before they pass them along to their successors.”

Speaking to an audience of more than 200 business leaders, Carney explained that the recovery from the 2008 financial crisis has been extremely slow, primarily due to the “fundamental loss of trust” in the global banking system. An important announcement was made on Thursday declaring that Carney, who is leaving for the Bank of England at the end of the month, will be replaced by Export Development Canada chief executive, Stephen Poloz. Among those present at the Friday’s panel included dean of the Rotman School of Management at the University of Toronto, Roger Martin, and Convivium editor-in-chief, Rev. Raymond De Souza. Carney said the loss of trust has a real economic consequence.

Furthermore, Carney stated that “it is making the pace of the recovery much harder and the pain of the aftermath that much worse. The real economy relies on the financial system and the financial system itself relies on trust.” The governor alleged that in the recent years before the financial collapse, the big banks was strayed from their course and became more concerned about generating profits, rather than helping their clients, i.e. the general public.