RBA boss raps banks for misconduct but warns tighter regulation could hurt economy

Reserve Bank governor Dr Philip Lowe says Australia's banks have been "severely tarnished" by evidence of shocking misconduct but has warned that tougher regulation might hurt the economy. 

Dr Lowe has cautioned against kneejerk responses as a result of the financial services Royal Commission and says bank boards need to review bonuses and other incentives that have encouraged bankers to act against the best interests of their customers.

Here's my report from the ABC's AM program