COBA responds to FSI interim report

16 July 2014

Australia’s customer owned banking sector has welcomed aspects of the Murray Inquiry’s Interim Report, but argues that it falls short on competition in banking.

Customer Owned Banking Association CEO, Louise Petschler:

“The FSI Interim Report’s finding that the banking market is ‘competitive’ is contradicted by its other findings that regulatory capital requirements are not competitively neutral and that the ‘too big to fail’ problem has become entrenched,” COBA CEO Louise Petschler said.

“Fair and sustainable competition in the banking market is not possible when the regulatory framework advantages only the biggest players.

“Sustainable competition is critical to consumer outcomes, as the FSI interim report explicitly acknowledges.

COBA welcomed the observation that ‘fairness is an important policy objective of the financial system’ with Petschler saying:

“The customer-owned sector strongly endorses the view that ‘fairness involves fair treatment by applying the concepts of integrity, honesty, transparency and non-discrimination which go to building trust in the financial system’.

“A fairer banking system in Australia also relies on better recognition of the customer owned banking model, issues which COBA will be pressing for further review.”

“There are many positive observations in the interim report and we will continue to work constructively with the FSI Panel.”

More on this topic:

• Finance system inquiry interim report due, Sydney Morning Herald, 14 July
• Small business vents frustration at the big banks, ABC 7:30 report, 14 July
• Big banks get too much help – study, Sydney Morning Herald, 11 July