Big four banks to face annual parliamentary scrutiny

SCRUTINY of Australia’s four major banks -- Commonwealth Bank, ANZ, National Australia Bank and Westpac -- will continue, with the House Standing Committee on Economics to hold public hearings at least annually with bank executives.

Daniel Mulino MP, the chair of the committee, said given the banks’ key role in the functioning of the economy, ongoing scrutiny was vital.

"The Financial Services (Hayne) Royal Commission, which reported in 2019, showed that far too often the banks did not live up to the trust that Australians placed in them," Dr Mulino said.

The committee will consider a number of consumer protection issues, including:

• The financial position of borrowers and areas of potential vulnerability
• Interest rates paid on deposits and loans
• Ongoing implementation of recommendations from the Financial Services Royal Commission, and
• Actions to protect customers from scams.

Other matters that will be raised include:

• Supporting the flow of credit, including to small businesses
• Operational performance, and
• Responses to climate change and supporting Australia’s progress towards climate and other sustainability goals.

"And when it comes to scams, with evidence showing that Australians lost more than $2 billion to scams in 2021, a record amount, we need to hear what extra consumer protection the banks are planning," Dr Mulino said.

Dr Mulino said the government continued to work on implementing the recommendations of the Hayne Royal Commission and that the committee was keen to hear from the banks on their responses.

The banks will also face scrutiny by a parallel inquiry into competition to be held by the Economics Standing Committee. The inquiry into promoting economic dynamism, competition, and business formation will examine how healthy competition can enhance the wellbeing of Australians.

The terms of reference for the hearings into the Big Four banks are available on the committee’s website. Information about public hearings will be made available in due course.

The committee will not be seeking or accepting submissions for this inquiry.

 

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