First PMC Bank scam occurred few months ago due to bad lending to HDIL and now Yes Bank has also been hit. RBI has placed a withdrawal limit of INR 50,000 for each depositor, so naturally, they are lining up outside the Yes Bank. These incidents clearly show that all is not well with the Indian financial sector and all the checks and balances aren't working as well as they should be.When PMC scam happened, many analysts blamed the depositors as cooperative banks are supposed to be high risk investments as they usually come with high returns. But who will they blame now? How can the people trust the other commercial banks like Axis and ICICI now? And what about nationalized banks like SBI and BOB, where will this thing end?Having ethical people is very important, especially in jobs that directly impact the well being of people such as defense, banking and finance, IT security, etc. Things like academic skills and experience should be a lower priority in these areas as people can be trained on job (and if not, then more people can be hired to make up for that) but there shouldn't even be slightest compromise on ethics.Another important factor is transparency. Auditors should be provided all the accurate data about finances so that they should be able to do their jobs properly. There should also be more transparency and less secrecy about things like whom the bank lends to and how much, what is the mortgage value, etc.It takes a compromise ofethics and transparency in order for a scam to happen. If either one of them was intact (either the decision makers where honest or auditors were provided all data), the scam could be avoided. Hence, its very essential to constantly and determinedly focus on these two virtues in order to retain your reputation as a financial institution.