HomeView 2017 Media ReleasesCOBA on Federal Budget

COBA looks forward to engaging with the Government and other stakeholders on the detail of the wide-ranging banking reform package unveiled in tonight’s Budget.

COBA looks forward to engaging with the Government and other stakeholders on the detail of the wide-ranging banking reform package unveiled in tonight’s Budget.

“The proposed new levy on major banks is an attempt to reduce the unfair funding cost advantage enjoyed by the biggest players and COBA has put forward similar proposals in the past as a temporary measure,” said COBA CEO Mark Degotardi.

“In our second-round submission to the Financial System Inquiry we published independent research indicating the unfair funding cost subsidy enjoyed by the major banks is between $2.9 billion and $4.5 billion.

“The levy will go some way to reducing this unfair advantage.

“In future, as policy measures are implemented to tackle the ‘too big to fail’ problem, the levy may not be necessary.

“We welcome the Government’s announcement that ADIs with less than $50 million in capital will be able to use ‘bank’ to describe their business.

“Of course, not all credit unions and building societies wish to rebrand as ‘banks’ but they should be able to use the term given that what they do is ‘banking’ and they are subject to the same rules as other banks by the banking regulator, APRA.

“We also welcome the Government’s commitment to introduce an ‘open banking’ regime to increase access to banking product and consumer data by consumers and third parties.

“We see great potential in a well-designed ‘open banking’ regime to drive competition and benefit consumers. Customer owned banking institutions have great service, great products and highly competitive pricing so we welcome measures to empower consumers to find a better deal.”

Media Release129.06 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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Media Contacts

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