(3 August 2016 – Australia) The Australian Government has said that it will summon the country’s “Big Four” before the parliament's economics committee each year to provide a full account of their affairs.
The announcement follows the Reserve Bank of Australia’s decision to cut the overnight cash rate by 0.25 percent, which was not passed on in full by any major lender.
Recurring issues, including interest rate rigging and bad financial advice, have been met with calls from a wide range of stakeholders including the Federal Opposition, for a Royal Commission into the banking and finance industry.
The newly re-elected government has ruled out a Royal Commission, despite parliamentary support from incoming senators and the opposition.
“What we will do now is institutionalise regular accountability and transparency,” Prime Minister Malcolm Turnbull told reporters.
“So this will become, if you are a bank chief executive appearing before the House economics committee, part of your regular annual schedule. You'll appear at least annually.”
“I accept this is a necessary initiative in the current climate,” ANZ CEO Shayne Elliott said in a statement.
“I welcome the opportunity to represent ANZ's views and to answer the tough questions that I know will be forthcoming in any parliamentary appearance.”