The country’s most senior prudential regulator says bank executive remuneration is still too aligned to financial outcomes, five years after the Hayne royal commission identified this as a key issue creating poor decision-making in the sector.

Attempts to improve risk culture and accountability, and reduce profit-based incentives in the banks, remain a “work in progress”, Australian Prudential Regulation Authority chairman John Lonsdale said on the five-year anniversary of Kenneth Hayne’s report being delivered to government.