Banks welcome calls for regulation that backs growth

Banks have welcomed Shadow Treasurer Tim Wilson’s call today for the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) to give more weight to economic growth in their decision making.

ABA CEO Simon Birmingham said regulation that supports growth is key to lifting productivity across the economy.

“Banks want to back local businesses with the finance they need to grow and hire more Australians. When rules are focused on real risks, benefits flow through to a stronger economy,” Mr Birmingham said.

“We also welcome the focus on proportionate regulation for smaller and mid-sized banks, which supports competition and gives customers more choice.

“A more productive economy means higher wages and a better standard of living for Australians, and that’s what this is ultimately about.

“Getting the balance right is crucial. Banks recognise the need to ensure a stronger focus on growth is implemented in a way that maintains the strength and stability of Australia’s financial system and protections for customers.

“Now it’s about turning the focus on growth into practical steps that cut unnecessary red tape. Banks will keep working constructively with APRA, ASIC and both sides of politics.”