HomeView 2017 Media ReleasesCOBA’s 3 Steps to make Banking Better for All

Politicians in Canberra will be presented with 3 Steps this week to make Australia's banking system better for all.

Politicians in Canberra will be presented with 3 Steps this week to make Australia's banking system better for all.

The Customer Owned Banking Association and its members are in Canberra calling for action to deliver sustainable banking competition.

"The 3 Steps are a fast tracked Productivity Commission review of banking competition, more focus on competition from APRA, and allowing customer owned institutions more capacity to raise capital," COBA CEO Mark Degotardi said.

"These measures make sense to us and they've been backed by recommendations from the 2014 Financial System Inquiry and Senate Inquiry into Co-operatives.

"We’re offering concrete solutions that can be implemented in 2017, to help get on with delivering genuine competition.

"Our 3 Steps should be taken up by our Federal representatives in Canberra and implemented."

COBA and Australia’s mutual banks, credit unions and building societies are calling for three policy responses on banking competition:

1.       Bring forward the PC review of competition 

The Turnbull Government should allocate funds in the May Budget to bring forward a planned Productivity Commission review of banking competition.

2.       Increase capital raising capacity for customer owned banking institutions.

APRA should respond positively to the Senate Economics Committee recommendation that it set a target date for the outcome of discussions with the co-operative and mutuals sector on issues of capital raising and bring those discussions to a timely conclusion.

3.       Change APRA’s legislative mandate to increase the focus on competition.

Amend the APRA Act to give the prudential regulator an explicit ‘secondary competition objective’ and require APRA to report annually against this objective.

COBA CEO Mark Degotardi added:

"The evidence is in and the onus is now on policy makers and regulators to deliver what consumers want - sustainable competition which will ensure a level playing field and give consumers more choice.

"While in Canberra, COBA will highlight the customer owned banking alternative, which delivers market leading customer satisfaction to its 4 million customers.

"Our customer owned model has a great story to tell.

"With these 3 Steps, customer owned institutions will deliver even more for Australians who want banking that puts them first."

COBA is encouraging Australians to visit the Better for All website and send a ‘postcard’ to their local MPs about banking issues important to them.

To find our more visit www.betterforall.com.au 

Media Release214.44 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 www.customerownedbanking.asn.au

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Mick Gibb
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