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4
October 2016
The Australian government has promised a
"significant" cultural change in the way the country's banks treat
their customers, ahead of this week's three-day parliamentary inquiry into the
banking sector on Tuesday. The Total
Investment & Insurance Solutions
The government in August said it would
grill the heads of the four major banks, the Commonwealth Bank, ANZ, Westpac
and NAB, following their controversial decision not to pass on the Reserve Bank
of Australia's (RBA) interest rate cut to customers, Xinhua news agency
reported.
The government said it would be
exploring ways to make the banking sector more accountable through driving
competition within the industry, with Commonwealth Bank boss Ian Narev to be
the first CEO to face the House of Representatives Economics Committee on
Tuesday.
The committee's chair, Liberal MP David
Coleman, said the inquiry would help restore consumer confidence in the banks,
which have been revealed to be the most profitable in the OECD.
"This public forum of 12 hours of
hearings this week is a very substantial development and I think it will lead
to significant cultural change in the industry," Coleman said on Tuesday.
Despite the government inquiry, the
federal opposition has maintained its pressure on the government to call a
royal commission into banking, MP Matt Thistlethwaite said. The "unethical
behaviour" had been exposed but a three-day questioning would not result
in any meaningful change.
"Many of the scandals in the
banking industry are continuing, the unethical behaviour continues,"
Thistlethwaite said. The Total
Investment & Insurance Solutions
"Whistleblowers have told us that
what's been exposed to date is the tip of the iceberg."
Labour's Shadow Minister for Financial
Services, Katy Gallagher, said the inquiry was a weak response from the
government and was just a way for Prime Minister Malcolm Turnbull to protect
the banks from having to face an independent royal commission. The Total Investment & Insurance
Solutions
"The bank CEOs will walk away at
the end of their three-hour chat, safe in the knowledge that they won't be
questioned again," she said. The
Total Investment & Insurance Solutions
"Meanwhile those who've lost their
savings, their homes or their businesses and who remain in debt to the banks
will be stuck living with the consequences every day."
While the government has maintained its
position that the three-day inquiry will uncover the root of the issue,
research undertaken by the Australia Institute found that two-thirds of Aussie
voters still want a royal commission. The
Total Investment & Insurance Solutions
At least 77 per cent of Australians
believe the banks should be forced to pass on the interest rate cuts, while 75
per cent believe banks should put customers ahead of shareholders.
Half of all voters think the
government's inquiry is simply a way for Turnbull to protect the banks.The Total Investment & Insurance
Solutions
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