The Australian banking industry's response to the challenge of its virulent reputation problems demands a little decoding.For a start, the timing of yesterday's six point "industry statement" invites a perception of a sector (and it's lead industry association) in reactive mode.The flurry of political activity in Australia in recent weeks, with the Government and the Opposition thrusting for public recognition of their versions of policy cures to well known sores in the banking industry, leaves the Australian Bankers Association and its score of members seeming a little startled.In fact, based on Banking Day's ring around yesterday, it seems the thrust of the industry's response has a considered genesis - though how long is contested.The change in chair of the council of the ABA - to NAB's CEO Andrew Thorburn from Westpac's Brian Hartzer in early December - may provide some context to the precursors of the response and a related shift in ABA priorities.ABA chief executive Steven Münchenberg said the core work on the response began "a couple of months ago," though less generous associates shorten the time frame to six weeks.In any event the timing precedes the media rumbles and eventual confirmation, two weeks ago, of Labor's plan for a royal commission into banking and financial services, one intended to focus on culture and misconduct.The ABA's long-term thinking, moreover, was informed by focus groups conducted by market research firm Crosby Textor. The unsurprising findings of these groups was that the banking industry needed to work harder to improve trust and standing in the community.The escalating political brinkmanship centred on Prime Minster Malcolm Turnbull's speech at an event to commemorate Westpac's 199th anniversary that stimulated the appetite of the hosts, at least, toward decisive action.Münchenberg explained yesterday that the timing of the industry statement was "obviously influenced by the current political environment" - adding that "dealing with a large number of banks with different business models is not easy."No amount of fair recognition for the merit of the sector's collaboration over the recent past and the credibility of the proposed banking industry actions can offset the impression that the Australian banking industry and its association are late responders.