Timing is right for fresh probe into financial services: NAB
Although embracing the review, Mr Clyne was tight-lipped about what he believed should be its terms of reference.
At a speech at a lunch in Melbourne on Thursday, Mr Clyne criticised business leaders who provided a running commentary on reform discussions with government, saying it jeopardised the changes aimed at improving the economy.
In that spirit, Mr Clyne said, he would keep to himself his thoughts about what should be part of the inquiry's terms of reference.
"I'll take the opportunity to provide input into the terms of reference, but hopefully it will be done in such a way that makes real difference," he said.
"It's obviously been 15-16 years since the Wallis inquiry, which was also 15-16 years after the Campbell inquiry, so there seems to be logic in terms of timing, if nothing else.
"A lot has changed. I think it will be a good opportunity to drive long-term reform."
Mr Clyne also said businesses were too concerned about a housing bubble developing, and about US debt ceiling negotiations.
He said it was too easy to get caught up in economic indicators and day-to-day macro talks, which he described as panics. "You can panic about inflation, unemployment, RBA minutes, building approvals, credit approvals, and next week I can start panicking about bond yields and retail sales and job ad surveys.
"The following week I'll start panicking about the Australian currency, Chinese PMI data, US non-farm payrolls. The next week I'll start panicking about the US Fed minutes and GDP figures. This creates this concept 'am I winning or losing?' almost daily. That is simply how you do not run a business."
Despite being appointed NAB's chief executive at the height of the financial crisis, Mr Clyne said he had focused more on NAB's long-term strategy for driving growth.
This focus was firmly on the bank's core markets in Australia and New Zealand and the introduction of a new information technology system to prepare for an "unstoppable wave of digitilisation".
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Cameron Clyne welcomed the long‑promised financial services sector inquiry and called the timing logical, noting it has been about 15–16 years since the Wallis inquiry (and similarly long after the Campbell inquiry) and that the review is a good opportunity to drive long‑term reform.
While Clyne embraced the inquiry as a chance for meaningful reform aimed at improving the economy, he kept his views on the exact terms of reference private—everyday investors should watch the inquiry’s scope and outcomes because any long‑term regulatory changes could influence banks like NAB and broader market conditions.
He argued that running public commentary on reform discussions with government can jeopardise changes intended to improve the economy, so he said he would keep his detailed input on the inquiry’s terms of reference to himself.
Clyne said businesses were too worried about a housing bubble developing and about US debt ceiling negotiations, suggesting those concerns are examples of getting caught up in short‑term panics rather than focusing on long‑term strategy.
He described panics as reacting strongly to a rotating set of indicators—inflation, unemployment, RBA minutes, building approvals, bond yields, retail sales, FX data, PMI and US jobs—saying that constantly asking ‘am I winning or losing?’ on a daily basis is not a sound way to run a business.
Clyne said he has focused NAB on a long‑term growth strategy, concentrating on the bank’s core markets in Australia and New Zealand while preparing the business for structural changes in the industry.
NAB is introducing a new information technology system to prepare for what Clyne described as an “unstoppable wave of digitilisation,” positioning the bank to handle digital change across products and services.
He referenced those past inquiries to highlight the timing—roughly 15–16 years between major reviews—and to argue that, given how much has changed since then, the new inquiry is a logical chance to pursue long‑term reform in the financial services sector.
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