HomeView 2016 Media ReleasesCall to support banking model that won’t fail culture test

Politicians sick of seeing major banks in the headlines for all the wrong reasons will have a chance to take action when a new report is released into the co-operative and customer owned business sector in Australia.

Politicians sick of seeing major banks in the headlines for all the wrong reasons will have a chance to take action when a new report is released into the co-operative and customer owned business sector in Australia.

The Senate Inquiry into Co-operatives and Mutuals is due to table its report tomorrow after a 12-month review of the role, importance and overall performance of the sector and any barriers to its growth.

“Now is an exciting time for the customer owned model. While other models are failing to live up to basic values and ethical standards, we’re getting on with providing a truly consumer focused way of banking,” COBA CEO Mark Degotardi said.

“We represent a genuine alternative to our listed competitors. We are strong, profitable businesses but our single focus is on our customers, not on maximising returns to shareholders.”

The inquiry’s report is timely, given the string of scandals emerging from the listed bank sector and the need to implement the Financial System Inquiry’s call for a more competitive banking market.

The Senate Inquiry has forced regulators to explain and defend their record in accommodating customer owned banking institutions in the prudential and corporate regulatory frameworks, particularly in relation to regulatory capital instruments and taxation.

Inquiry Chair Senator Chris Ketter, reflecting on comments by APRA and ASIC about corporate culture and ethics, put this question to regulators at the inquiry’s final hearing:

“Is it about time we started to look at mutuals as a model which needs to be given a bit more prominence and recognition as being in line with the ethical standards that we would like to see in industry?”

Customer owned banking institutions, i.e. credit unions, mutual banks and building societies, have 4 million customers and total assets of $97 billion.

“We are confident the inquiry’s report on the co-operative sector will shine a light on what needs to be done to better accommodate the customer-owned model,” Mr Degotardi said.

COBA’s submission to the inquiry is available here.

Media Release189.18 KB

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

284x148_man.jpg

Media Contacts

Mick Gibb
Corporate Affairs Manager
P: +61 2 8035 8444
M: +61 423 149 494
Email Mickcontact-arrow

COBA Alerts

To receive notifications about our latest Media Releases, Submissions and other news sent straight to your inbox, subscribe to COBA Alerts.