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Is Google going to make Android a nightmare?
(arachnoid.com)
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A banking app allowing itself to run on rooted devices isn't a security issue.
Depends on your level of security consciousness. If you're relying on security identifiers or apis that need an "intact" system, it certainly can be a security issue if you can't rely of those.
That being said, it's not exactly a plausible risk for most people or apps.
That's right. And if there is, the issue is the bank, not your phone. Rule number 1 in security is never trust the client.