Customer-owned banks have welcomed the new Statements of Expectations for APRA and ASIC, which place renewed emphasis on proportionate, risk-based regulation while preserving strong consumer protections, supporting economic growth and maintaining financial system stability.
“We have consistently advocated for regulation that is proportionate and risk-based, so customer-owned banks can continue to deliver genuine customer choice and robust competition in banking,” said Customer Owned Banking Association (COBA) CEO Michael Lawrence.
“We welcome these updated expectations, which recognise the importance of a diverse banking sector in Australia.”
The updated expectations for APRA include maintaining a “proportionate banking regulatory framework that maintains depositor protection and financial stability, while minimising regulatory burden on smaller banks”. COBA has long advocated for a regulatory framework that maintains strong consumer protections and financial stability while ensuring obligations are proportionate to an institution’s size, complexity and risk profile.
“We welcome a tailored regulatory approach that recognises the distinct models and risk profiles of different banks. This will allow customer-owned banks to focus on what they do best – meeting the needs of their members and communities – while supporting greater competition and choice across the Australian banking sector,” Mr Lawrence said.
COBA also welcomes the commitment to greater transparency around future regulatory initiatives, and to publish key performance indicators that demonstrate how regulators are minimising undue burden for industry.
Collectively, customer-owned banks serve more than 5.4 million Australians through purpose-led banking, delivering competition, diversity and market-leading levels of customer satisfaction in the retail banking market.
The 47 mutual banks and credit union represented by COBA serve a diverse range of communities and tailor their services to meet a wide spectrum of customer needs. Because they are owned by their customers, customer-owned banks prioritise the social and economic wellbeing of their communities, delivering outcomes that benefit customers and extend their impact beyond traditional financial services.
“Customer-owned banks play an important role in delivering competition and choice for Australian consumers. Fit-for-purpose and proportionate regulatory settings will support customer-owned banks in their market-leading service to members and broader communities – and ultimately give Australians more choice,” Mr Lawrence added.
ENDS
For further information or to arrange interviews, please contact Mira Palomaki on 0459 954 035 media@coba.asn.au
The Customer Owned Banking Association is the industry body for mutual banks, credit unions and building societies. For almost 180 years our sector has put customers first, returning profits to more than 5 million Australians who put their trust in customer-owned banks.