24 November 2016
Sydney, 24 November 2016: The Australian Bankers’ Association has today acknowledged the comprehensive House of Representatives Standing Committee on Economics’ report from its inquiry into the four major banks.
ABA Chief Executive Steven Münchenberg said Australia’s banks were committed to protecting consumer interests, increasing transparency and accountability, and building trust and confidence in banks.
“Consumers are demanding action now, and we are responding,” he said.
“The industry is making major changes that address concerns about how bank staff are rewarded, the protection of whistleblowers, the handling of customer complaints and dealing with poor conduct. We are doing this with independent oversight.
“Further reforms are being introduced by the Federal Government, including higher standards for financial advisers and greater powers and resourcing for ASIC. We support these changes.
“Many of the committee’s recommendations build upon reforms already underway to make banking better for all Australians.
“Banks are improving the way they handle customer complaints by appointing dedicated customer advocates to ensure complaints are appropriately escalated and responded to within specified timeframes.
“If customers are not satisfied with how their bank handles a complaint, we agree it should be easier to get help externally. The ABA supports having a one-stop-shop to handle disputes or direct people where to go.”
Mr Münchenberg said the banking industry had consistently supported reasonable measures to enhance competition.
“Australia’s financial services industry is competitive. Consumers can choose from 150 APRA-regulated providers, 3,600 home loan products and 190 credit cards.
“Banks recognise the importance to customers of being able to access their data so they can get the most out of their financial products and services. But this has to be balanced with protecting customers’ privacy and the security of their financial information,” he said.
The industry will examine the committee’s recommendations in detail and await the Government’s formal response to the report.
Contact: Stephanie Arena 0477 470 677 or Nic Frankham 0435 963 913
“The Australian Banking Association (ABA) welcomes the agreement reached today on the proposed safeguard mechanism reforms, given it paves the way for the passing of a critical piece of legislation for Australia.
“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.”
“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”