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Bullshit. Google's primary aim is to make sure that Android builds which aren't Google-approved and may not integrate Google's profitable services as deeply are not commercially viable.
Remember to leave one-star reviews for any apps that use this shit.
I mean, both things can be true? I know banks are pushing on Google to improve Android security, to avoid malicious apps with root access from messing with banking apps.
The fact is that a rooted phone can definitely be less secure if the user doesn't 100% know what they're doing, in the same way that always logging in as root on a Linux system can be.
Configuring one's system to always login as root in Linux is significantly easier than rooting an Android phone. One needs to know their way to root their phone and spend significant amount of time tinkering with it so that everything works properly.
As for malicious apps, there are many such apps on the Play Store as well. In fact, I would argue that the safest distribution channel is F Droid and not Play Store.
I can't speak for foreign banks but for banks in my country, they have a problem that is way way worse than any Android stuff can solve ( read: giving access to your account only via SINGLE password and only asking for SMS OTP when transaction is done; and of course no hardware key support). I don't wish my banking data to be less secure than a WordPress account!
I agree with this too! I don't think I've seen any other app stores (on any platform) focus on reproducible builds.
This was a problem with US and Australian banks too. It's still an issue in Australia, but some of the major banks in the USA have moved to sending 2FA requests to their mobile app, and either allowing OAuth or app-specific passwords to allow other services to get data from your bank account.