COBA seeks real change from FSI

27 August 2014

The Customer Owned Banking Association (COBA) today released its second submission to the Financial System Inquiry, calling for a strong banking system to be made even stronger through a genuine commitment to promoting competition.

“Improving our banking rules will create a level playing field and will secure the long term stability and competitiveness of Australia’s banking sector,” Mr Degotardi said.

“The FSI’s interim report did a great job identifying many of the problems. This progress can’t be lost – the FSI must now recommend real change.

COBA’s submission details several measures that will:

• Increase the likelihood that consumers are confident and informed in banking and financial services markets;
• Address the unfair funding cost advantage and risks posed by systemically-important major banks;
• Reduce or get rid of regulatory capital and other rules that unfairly favour larger lenders over smaller ones;
• Change legislative mandates of the key regulators APRA and ASIC to ensure they are more accountable for fostering competition;
• Recognise the stability, diversity and strength of the customer owned model in policy settings.

The release of the report follows the release of a COBA survey last week, undertaken by Essential Research that found:

• 62 per cent of Australians have little or no trust in the big four banks to give independent financial advice;
• 86 per cent of Australians think there needs a little or a lot more transparency and clarity regarding rates and fees;
• 54 per cent of Australians believe there needs to be more competition in the banking market.

Read more on the COBA website.