Bank bashing is a feature of every Federal Election. There are also the conspicuous failures that suggest the paucity of banking practices and ethics — failures such as financial planning scandals, excessive or unjustified fees and charges, inadequate insurance payouts, excessive executive and board remuneration, interest rate fixing and manipulation, and a general lack of transparency and ability.
One Response Clive says:. It always happens. Yemen Zambia Zimbabwe.
Some have argued therefore that banks should be subjected to a super profits tax, to claw back some of the excessive profits that they generate by exploiting this privilege, to the benefit of the broader Australian community. A Standing Parliamentary Committee for such oversight and review is also fundamentally important in this respect.
Economics and financeGovernment and governanceTrade and industry Australia. The bottom line is that our banks are in an extremely privileged position in our society, and that many feel they abuse, rather than fully recognise and satisfy their economic and social responsibilities.
John Hewson. Hewson, J. In for a penny, in for a pounding!
It is claimed that a Royal Commission would provide a mechanism to give voice to community concerns about the banks, through very public hearings. Existing regulatory powers through ASIC and APRA already far exceed the powers of a Royal Commission, most importantly in being able to initiate prosecutions, and to impose a range of other penalties. Clearly, the banking industry needs to clean up its act, by improving its culture and ethics, by improving its governance, remuneration and incentive structures, all with much more transparency.
This is about the banking culture versus a public duty abandoned long ago. In contrast, a Royal Commission can only recommend.
But, the community is already able to go further, and to take specific actions, as evidenced by a of class actions launched against the banks, and other legal actions launched by the authorities, as with the current ASIC case against Westpac and the ANZ for interest rate fixing. I would like to receive the newsletter and other promotional material. However, a politically motivated witch-hunt into our banking system would be quite counterproductive to our national interests, and may even risk the very stability of the system it is seeking to reform.
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The key issues then are to ensure that these authorities are adequately empowered and funded, and are sufficiently transparent and able in their activities. April 22, Select Mr. the APP Society. How do you know that there is a Federal election just around the corner?