Former financial regulators should be banned from sitting on the boards of banks and other institutions following revelations of conflicts of interest at the Hayne royal commission, says Deutsche Bank's banking analysts.

The inquiry had exposed how the mortgage product had evolved from a means to afford a home to "a high-return financial-credit product which fabricated both a source and store of chimerical wealth", Matt Wilson and Anthony Hoo said in a note to clients published on Thursday.

The extent to which the family home had been 'financialised' made regulators vulnerable to capture given "the broader economic and political impacts of their actions", they said.

Jonathan Shapiro with the full story here.