ABA unhappy with government regulation
(9 June 2011 – Australia) Australian Bankers Association (ABA) chief Steven Munchenberg launched a political attack on the government this week, accusing it of creating regulation that damages the prospects of the domestic banking sector.
In a speech in Sydney yesterday, Mr Munchenberg said Labor's regulatory response was rushed and lacked the co-ordinated approach of other countries.
Mr Munchenberg, a former senior National Australia Bank executive, also took aim at the Greens' proposal to introduce a 'too big to fail' levy on the banks in a bid to increase retail banking competition.
The Greens also plan to push for a cap on interchange fees for customers using rival banks' automatic tellers and forcing banks to provide fee-free bank accounts.
Mr Munchenberg said the government's move to increase regulation, especially for mortgages and credit cards, was misplaced and could lead to higher costs for customers.
'More often than not it stands in stark contrast to the effective collaborative approach we have when faced with overseas challenges.
'In some areas, we have seen the government willing to work collaboratively not just with the banks but with other stakeholders as well, but in other areas we see a very different approach.
'What we see is an announcement by the government that there is a problem, that this is the government's solution and that it will all be fixed very quickly.'
Mr Munchenberg said the government's crackdown on price signalling and credit-card reforms were prime examples of regulation that was not needed for customers or the banking industry.
Mr Munchenberg, a former senior National Australia Bank executive, also took aim at the Greens' proposal to introduce a 'too big to fail' levy on the banks in a bid to increase retail banking competition.
The Greens also plan to push for a cap on interchange fees for customers using rival banks' automatic tellers and forcing banks to provide fee-free bank accounts.
Mr Munchenberg said the government's move to increase regulation, especially for mortgages and credit cards, was misplaced and could lead to higher costs for customers.
'More often than not it stands in stark contrast to the effective collaborative approach we have when faced with overseas challenges.
'In some areas, we have seen the government willing to work collaboratively not just with the banks but with other stakeholders as well, but in other areas we see a very different approach.
'What we see is an announcement by the government that there is a problem, that this is the government's solution and that it will all be fixed very quickly.'
Mr Munchenberg said the government's crackdown on price signalling and credit-card reforms were prime examples of regulation that was not needed for customers or the banking industry.
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