Westpac CEO Peter King (Image: AAP/Mick Tsikas)

Despite successful efforts at media management by Westpac, this week showed us that the Hayne royal commission left some major problems untouched: the governance and cultural problems at the heart of the way our financial giants were run.

Yesterday, the primary banking regulator, the Australian Prudential Regulation Authority (APRA), delivered a stunning rebuke of Westpac that should be the biggest business story of the week.

Westpac has been compelled to enter into an Enforceable Undertaking with APRA to "lift substantially its efforts to address risk governance deficiencies". It "comes after APRA expressed concerns with the bank’s progress in remediating weaknesses including an immature and reactive risk culture, unclear accountabilities, capability shortfalls, and inadequate oversight."