chapter  4
16 Pages

Legitimacy

Among the most pervasive effects of the global financial crisis, the sudden decline in the legitimacy of banks stands out as perhaps one of the most persistent and intractable problems. Banks, while oftentimes admired, have never been loved by the public; bankers even less so. At the same time, banks cannot possibly operate without being perceived as legitimate agents in the financial services sector. At the core of the problem lies the basic fact that banks are the depositories of the public’s trust. Banks, to play a role in the modern economy, need the unmitigated confidence of the public in what they do and how they go about doing it.