Financial inquiry 'must be broad'
The bank's institutional boss, Rob Whitfield, said the inquiry should examine deep-seated shifts taking place in finance, rather than pursue narrow agendas.
While Mr Hockey first called for the inquiry several years ago, against a backdrop of growing concerns about competition in banking, Mr Whitfield said it must also broach issues including taxation, infrastructure, superannuation and insurance.
"What we don't want to see is a really narrow-based inquiry," Mr Whitfield said at a Financial Services Institute of Australasia conference in Sydney.
"We don't want to just restrict it to competition. We want to see the benefit of what has been a really strong financial system that has thrived through the GFC and a really strong banking system that has thrived through the GFC."
The big four banks have consolidated their market share in the past five years, controlling more than 80 per cent of all deposits and home loans.
Given this shift, customer-owned lenders are pressing for competition to be high on the agenda at the inquiry - for which Mr Hockey has not yet set terms of reference.
Bankmecu chief executive Damien Walsh said a key issue to be addressed was the tax treatment of deposits, which are taxed more heavily than shares and other asset classes.
NAB's executive general manger of capital markets, Steve Lambert, said he hoped the inquiry was of similar standard to the Campbell review, which sparked a wave of reforms in 1980s including the liberalisation of the financial system.
Frequently Asked Questions about this Article…
Joe Hockey’s financial inquiry was proposed to review Australia’s financial system against a backdrop of growing concerns about competition in banking. The inquiry was first called for several years ago to look at how the system operates and whether changes are needed to protect consumers and promote a healthy financial sector.
Westpac argues the inquiry should be wider than narrow competition issues so it can examine the broader forces that helped Australia avoid the worst of the global financial crisis, and consider deep-seated shifts in finance rather than focus on a single agenda.
Industry leaders including Westpac’s institutional chief Rob Whitfield want the inquiry to cover taxation, infrastructure, superannuation and insurance, as well as wider structural and long-term shifts in the financial system.
The article notes the big four banks have consolidated their market share in the past five years and now control more than 80% of all deposits and home loans. High concentration can affect competition on rates, fees and product choice—issues that matter to everyday investors and savers.
Customer-owned lenders are pushing for competition to be a high priority on the inquiry’s agenda, arguing that greater competition is needed given the consolidation of market share by the big four banks.
Bankmecu chief executive Damien Walsh highlighted the tax treatment of deposits, saying deposits are taxed more heavily than shares and other asset classes—an issue he believes the inquiry should address.
No. According to the article, Joe Hockey has not yet set the terms of reference for the inquiry, so stakeholders are urging a broad scope before those terms are finalised.
NAB’s Steve Lambert said he hopes the inquiry will be of a similar standard to the Campbell review, which in the 1980s triggered a wave of reforms including liberalisation of the financial system—an example some want this inquiry to emulate.
Call 1300 880 160
Start a chat
Schedule a call
