HomeView 2013 Media ReleasesCOBA raises questions about competitive effect of proposed new levy

The Customer Owned Banking Association today raised concerns about a proposed levy on banking institutions but welcomed consultation with the Federal Treasurer Chris Bowen on the issue.

COBA Chief Executive Louise Petschler said the industry has questions about how such a pre-funded scheme would work and any potential adverse impact it will have on customer owned institutions.

“Our chief concerns are the impact of any levy on smaller institutions and what such a levy will mean for competition and choice for Australian consumers.

“We believe any proposed change should not disadvantage customer owned institutions or harm the savings of depositors,” Ms Petschler said.

“We don’t want a system which leads to smaller players paying comparatively more than larger ones, delivering big banks a competitive advantage.

“Just as importantly, any levy needs to properly consider the impact it will have on Australian family savings.”

COBA looks forward to planned further consultations on this important issue for the future of the banking sector.

The Customer Owned Banking Association will continue to be a strong advocate for a system more broadly where smaller players can compete fairly and tackle the market dominance of the major banks.

“Australia’s banking system is highly concentrated and dominated by the four major banks and we will continue to lobby for policies that promote vibrant competition in the banking sector”, Ms Petschler added.

For more information please contact:
Daniel McDougall, Senior Adviser Media
02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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