fbpx
Skip to main content
Get step-by-step help: Financial Assistance Hub

ABA rejects ALP call for royal commission

8 April 2016

Sydney, 8 April 2016: The Australian banking industry believes a royal commission into financial services is unnecessary and a waste of taxpayer funds, Australian Bankers’ Association CEO Steven Münchenberg said today.

“Banks do accept that in the past they have not always lived up to their own standards, let alone those of their customers,” Mr Münchenberg said.

“That is why we have seen new regulation introduced for banks. That is why we have had a number of inquiries, before Parliament and others. The issues the Australian Labor Party is talking about have already been examined.

“The outcomes of those inquiries are either being implemented or, like the former Government’s Future of Financial Advice reforms, are still taking full effect. These measures respond to instances that occurred in the past and should be given a chance to take full effect before another inquiry is contemplated,” he said.

“As an industry, we recognise that banks need to show leadership in addressing very real concerns about culture and conduct. Banks will continue to work with government and regulators to address any legitimate concerns with inappropriate behaviour or misconduct.”

Mr Münchenberg said the ALP’s proposal would have international ramifications for Australia.

“Banks are particularly concerned that a call for a royal commission will send alarm signals to international investors about Australia at a time of global volatility,” he said.

“Australia’s banks are already highly regulated. Banks have also just contributed to a comprehensive review of the financial system and are now implementing recommendations from the Financial System Inquiry to ensure the integrity of the system into the future.

“Banks support the core of the economy and highly value their social license to operate.”

ENDS

Contact: Stephanie Arena 0477 470 677 or Nic Frankham 0435 963 913

Latest news

1 / 3
Media Releases
Accessible and inclusive banking: Consultation set to begin for accessibility standards review
16 March 2023

“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”

Read more
Transcript
Transcript – Anna Bligh interview with Sky News’ Andrew Clennell on SVB closure
13 March 2023

“What is underpinning this bank failure is a number of things, but not least of all, it’s a very niche bank with high exposure to one part of the economy. And that’s the part of the economy that’s been quite volatile and troubled”

Read more
Media Releases
Statement from the Australian Banking Association (ABA) regarding Silicon Valley Bank (SVB) issue.
13 March 2023

The Treasurer has indicated that the federal government is closely monitoring the situation.

Read more