Bankers positive on Parliamentary Committee outcome
The Federal Opposition may have been underwhelmed by the initial outcome of the House of Representatives Standing Committee inquiry into the banks, but the Australian Bankers' Association (ABA) believes it raised important issues some of which are already being addressed by the sector.
While Labor members of the Parliamentary Committee were yesterday expressing their disappointment in the process, the ABA chief executive, Steven Munchenberg claimed it had provided "a valuable forum for major banks to respond to issues of interest to the committee and outline the progress already being made to address them".
"As an industry, we know we haven't always lived up to the expectations of all of our customers and the wider community. The banks are acknowledging those issues and more importantly they are addressing them," he said.
Further, Munchenberg claimed that many of the issues raised in the Parliamentary Committee process were already being addressed by the Federal Government or industry initiatives and pointed to the banking industry's six point reform package launched in April which included independent reviews into:
- Pay structures that put incentives for bank staff ahead of customer needs. The review is being conducted by former Australian public service commissioner, Stephen Sedgwick, with a final report expected in March 2017; and
- The Code of Banking Practice to lift standards of conduct and culture. The review is being conducted by former Australian Securities and Investments Commission (ASIC) executive, Phil Khoury, who is due to report by December 2016.
The next progress report on the delivery of the industry's reform package will be made by an independent expert, former auditor-general, Ian McPhee AO PSM, by 21 October 2016.
The banking industry's six point reform package is running in parallel with separate Government reviews into:
- Finding faster and better ways for customers to get justice if they feel they are treated unfairly (the Ramsay Review, which reports in March 2017); and
- The treatment of small business customers (the Carnell Review, which is due to report by the end of 2016).
Münchenberg said the ABA and the banks intend to set out detailed responses to the matters raised by the Parliamentary Committee in the coming weeks, including responses to various questions on notice.
"We believe there is an opportunity to accelerate the timetable on a range of initiatives and we will be exploring this with our members and with the committee, particularly on matters where there is general agreement on the need for action sooner rather than later," he said.
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