Banks welcome growth mandate for financial regulators

Australian banks welcome the release of new Statements of Expectations for APRA and ASIC, which put economic growth, proportionate regulation and cutting unnecessary regulatory burden at the centre of how Australia’s financial regulators operate.

ABA CEO Simon Birmingham said the inclusion of growth mandates in these new statements is something the banking industry has consistently called for.

“Banks welcome new measures that support productivity and growth across the Australian economy,” Mr Birmingham said.

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

“Similar mandates have been introduced internationally, including in the UK, and their introduction here in Australia will help ensure our banking sector remains internationally competitive while also helping to boost domestic growth.  

“The test will be to ensure there is proper accountability and scrutiny of how regulators act on these expectations set out by government. We welcome the requirement for both regulators to report publicly on how they deliver against these expectations.

“We also welcome strengthened commitments to proportional regulation for smaller and mid-sized banks which will support competition and give customers more choice without lowering protections.

“These new statements build on momentum from regulatory efficiency measures announced in the budget and the Council of Financial Regulators’ ongoing work on regulatory reform. Banks will continue to work with APRA, ASIC and the government to progress these initiatives.”

Regulation & Policy