HomeView 2016 Media ReleasesASIC funding welcome but culprits should pay

Funding for corporate regulator ASIC to address major bank misconduct is welcome, but the levy should be paid for by those who are responsible for the scandals.

Funding for corporate regulator ASIC to address major bank misconduct is welcome, but the levy should be paid for by those who are responsible for the scandals.

“The major banks that have caused the problems for consumers should be paying ASIC’s bill,” COBA CEO Mark Degotardi said.

“We will always support measures that require regulators to give greater priority to promoting competition and consumer choice.

“But the customer owned model isn’t part of the problem - it’s actually part of the solution for consumers with an appetite for trusted banking services.

“So we shouldn’t have to pay for fixing problems we haven’t caused. The customer owned banking model is the only one that can be relied upon to put customers first.

“We agree ASIC should be given the resources it needs to tackle major bank misconduct but the only sustainable solution to addressing the endless scandals is a more competitive banking market.

“Increasing regulator funding will not by itself address the real problem.

“The most effective way to make significant positive change is to urgently implement the Financial System Inquiry reform agenda on resilience and competition in banking.

“It’s a pro-competitive blueprint delivered in 2014, accepted by Government last year, but is not being implemented with enough urgency.

“A genuine positive change in ‘trust and culture’ in financial services will only occur by increasing competitive pressure on major banks.

“Customer owned institutions simply seek a fair go and level playing field.

“Because they are considered ‘too big to fail’, major banks have a funding cost advantage on smaller competitors and a free subsidy from taxpayers.

“The current tax system also puts a higher effective tax burden on the customer owned banking sector than the major banks.

“A genuinely competitive banking market is beneficial for the wider economy, for consumer choice, and for rebuilding trust in the financial services market.”

Media Release130.9 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.