The head of the Financial System Inquiry, David Murray, has rejected calls for a royal commission into banks and described the planned parliamentary review as unnecessary, arguing there is "no systemic law-breaking" in the industry.Murray's view is that for actions to be defined as systemic law-breaking they have to be intentional and repeated.Speaking at an Actuaries Institute risk management forum yesterday, Murray said banks did have a problem with reputation and this was something they needed to fix."I want to ask why it is that all the work that banks put into their involvement with community and that boards put into risk management has fallen to nothing."Murray said many commentators think that reputation is an outcome but his view is that boards can do a lot to manage it by agreeing on a set of "beliefs", sharing those beliefs with management and staff and being alert to emerging problems.He said one of his biggest concerns was that the Corporations Act and the regulatory approach of the Australian Prudential Regulation Authority made it hard for boards to do what needed to be done.He said the Corporations Act treated directors unfairly in reversing the onus of proof in some matters and removing the defence of due diligence with some asset sales.He said corporate governance guidelines were a one size fits all approach, with the same system of governance applying to companies, as well as the same board structure, the same committee structure and the same reporting rules."These things make for a defensive culture and they take away difference and any competitive edge at board level," Murray said."APRA takes accountability away from executives and puts it onto boards. Boards are drawn into management, which means they can't perform their role."