Australian government announces banking tribunal
(7 October 2016 – Australia) Following a three-day inquiry into the Australian banking sector, the Australian government announced that it will establish a banking tribunal.
Confirmed by Prime Minister Malcolm Turnbull on Friday, the decision was made as a non-partisan governmental committee questioned the CEOs from Australia’s “Big Four” banks about how they can better serve their customers.
The committee covered a variety of topics, questioning the bank heads on interest rate cuts, bank fees, financial advice, cross-selling and executive salaries.
Turnbull told Adelaide-based radio station that the government would set up an independent tribunal which would allow customers to raise banking issues without having to hire costly lawyers and proceed through the legal system.
"We will get a low cost, speedy tribunal to deal with these types of consumer complaints, customer complaints against banks," he said.
"This will be real action."
Turnbull said the government better understands "these institutions work" and said it had made deliberate moves to address cultural change within the banking sector.
The banks have also backed the government's plan; Westpac CEO Brian Hartzer said the government should "simplify (the appeal process) and make it clear so that customers know where to go", while the heads of both the ANZ and the Commonwealth Bank have also indicated they would support a tribunal.
However, opposition spokesperson Katy Gallagher described the inquiry as a "stich-up" and said Labor would continue to push for a royal commission.
She said 70 percent of Australian voters want a royal commission into the banking sector, and that the Prime Minister's tribunal idea has a worrying lack of detail. She said it was little wonder the banks were happy to throw support behind his idea.
"We're not prepared to accept the sham process that existed this week, a stitch up that existed," Gallagher told the press on Friday.
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