HomeView 2015 Media ReleasesConsumers the winners in Government’s FSI response

COBA today welcomed the Government unambiguously backing the Murray Report’s vision for a more competitive, more consumer-friendly banking market.

COBA today welcomed the Government unambiguously backing the Murray Report’s vision for a more competitive, more consumer-friendly banking market.

“The Government’s response to David Murray’s Financial System Inquiry report is great news for consumers,” said COBA CEO Mark Degotardi.

“The FSI delivered a blueprint for reform and the Government is to be congratulated for accepting the overwhelming majority of the inquiry’s recommendations.”

“These measures will unleash genuine, sustainable competition in retail banking.

“COBA welcomes the Government’s commitment to regularly review competition in the financial system and to increase the accountability of regulators.

“We also welcome a suite of specific pro-consumer commitments, including a crackdown on credit card surcharging, a requirement on financial advisers and mortgage brokers to disclose their relationships with major banks, and a new product intervention power for ASIC to ban harmful products.”

The FSI report released last year concluded that Australia has a financial system where unfair consumer outcomes remain prevalent and policy settings do not focus on the benefits of competition and innovation.

The report warned that the high concentration and increasing vertical integration in some parts of the system could limit the benefits of competition in future.

Today the Government has endorsed APRA’s initial response to level the playing field and also agreed that steps should be taken to reduce any implicit government guarantee and the perception that some banks are too big to fail.

The Government’s support for increasing the resilience of the major banks with stronger capital requirements has the critical additional benefit of enhancing the competitive position of smaller players like customer-owned banking institutions.

As the Government’s FSI response says, ‘the measures reduce the advantages the larger banks have over their smaller counterparts, increasing competition and leading to better outcomes for consumers’.

“The customer-owned model puts the customer first and, with the implementation of the FSI blueprint, our sector has the opportunity to grow and thrive in a framework that promotes competition and consumer choice,” Mr Degotardi said.

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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

Customer Owned Banking Association is the industry body for credit unions, building societies, mutual banks and friendly societies.  See coba3.nexusone.com.au

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