Banks welcome focus on reducing regulatory burden

Australian banks welcome the Federal Government’s release of an updated Regulatory Initiatives Grid, helping to ensure there is more transparency and coordination when new financial rules are introduced.

The ABA particularly welcomes new principles that streamline coordination between regulators, reducing duplication and regulatory burden across the industry.

ABA CEO Simon Birmingham said the Grid was one practical step forward in improving how regulators and industry work together to improve outcomes for customers.

“Regulation is essential in maintaining a strong and safe financial system, however unnecessary duplication and complexity diverts time away from focusing on customers,” Mr Birmingham said.

“If implemented well the Grid can be a common-sense initiative that ensures banks have more certainty and can better plan and coordinate regulatory proposals.

“The Grid is particularly critical to Australia’s smaller and medium-sized banks, giving them better visibility of regulation so they can focus on innovating and better serving their customers.

“With better coordination of regulation, banks will experience less duplication and red tape, allowing them to allocate more resources to innovation and delivering for customers.

“The Grid now sits as an important part of the Government’s overall productivity agenda, where strong and welcome ambition to reduce regulatory costs needs to be delivered upon by departments and regulators.

“We welcome the Government’s continued collaboration with the sector to keep the financial system strong and support a competitive banking industry.”