HomeView 2014 Media ReleasesTime to get on with capital reforms

The Murray Report’s verdict on bank capital reform should be implemented without delay.

“We’ve had the debate, the independent umpire has laid down the blueprint, so let’s get on with making the banking system stronger and more competitive,” COBA Acting CEO Mark Degotardi said.

“While some of the Murray recommendations require a Government response and legislation, the Treasurer has rightly indicated that the capital reforms are a matter for APRA.

“This takes politics out of the regulatory capital reform agenda and means the necessary changes can and should be implemented expeditiously.”

Narrowing home loan risk weight differences is a key priority of the Murray Report’s recommendations to promote competition.

The Murray Report says competition and competitive markets are at the heart of the inquiry’s philosophy for the financial system and the inquiry sees them as the primary means of supporting the system’s efficiency.

The report warns that high concentration and increasing vertical integration in some parts of the financial system has the potential to limit the benefits of competition in the future.

“The Murray report has observed that our regulators have not focussed sufficiently on competition.  APRA now has a great opportunity to demonstrate its commitment to promoting competition,” Mr Degotardi said.

“It’s time to give smaller competitors a fair go.

“Customer owned banking institutions are ready and willing to take on the major banks in home lending and other consumer banking markets.

“We want to reverse the trend of increasing dominance of the major banks.

“COBA urges all stakeholders to accept the independent umpire’s decision and take a constructive approach to regulatory capital reform. We can’t let the opponents of reform bog down the process with an endless cycle of debate and denial.”

For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication
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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