Alexandra Gartmann, CEO of Rural Bank, took a principled tack at yesterday's first hearing in Darwin of the banking royal commission."We do need to try and balance, knowing the agricultural cycle, knowing it takes a number of years to work out, particularly in longer-term drought cycles," Gartmann told counsel-assisting Rowena Orr.We are "making sure that we're not misusing depositors' and shareholders' funds - and also making sure that we're not eroding the equity for the individual customer, that we can find a solution so that there is an ability to continue to operate" she said."If we get to the situation where, despite everybody's best endeavours, there is not a viable operating entity that can continue to trade out, then we will discuss enforcement action, Gartmann said."And that will incorporate, if they're willing, a mortgagee-in-possession where they continue to have control of the asset until sale. And if the customer is really not particularly happy to collaborate and cooperate in that instance, then we will appoint a receiver manager."Rural Bank played fair with customers, or mostly. "The longest period of time we worked with a customer was seven and a half years. And, to some extent, you could say that we are working with customers for too long - without giving adequate consideration to our shareholder, and also our deposit base. "I think we need to give as much opportunity to trade out as possible, and to find that positive season in order to truly be an agricultural specialist,"  Gartmann said.Bendigo's division CEO for agribusiness had to explain this:    "Bendigo Bank also told the commissioner that the conduct in relation to those non-performing loans - these are the cattle industry loans - could be attributed at least in part to aspects of industry credit practices that prioritised asset growth?" Orr asked."Yes, that is written there," Gartmann said. "We see that Bendigo Bank recognised that that conduct might reflect elements of industry credit practices that fell short of community standards and expectations?" "Yes. That's written there," Gartmann repeated.