Banks and the Public Interest

The financial crisis of 2007 hit Western economies hard. It also reinforced the view of scientists, journalists, and politicians that bank managers are too inclined to pursue short-term results to serve shareholders and their personal interests, rather than the public interest (e.g., Van Staveren, 2012; Minsky, 2015). In the decade after 2007, a barrage of criticism was leveled at banks on issues including lending to local communities and SMEs, handling customer relationships, ethics in financial markets, managing private debt, compensation, personal data processing, reorganizations, investments in meaningful products, and sustainability. Debates about resilience to risks continue, and scientists argue that the system and governance of the international financial market system still pose a threat to economic stability and the viability of banks (Vogl, 2014; Pettifor, 2013; Underhill, 2014; IMF, 2016).