Treasurer rejects bank regulation
(21 October 2010 – Australia) Australia’s treasurer Wayne Swan has hit out at the opposition saying they are putting the nation’s "pillars of prosperity" at risk by demanding government regulated bank interest rates.
Joe Hocky, opposition treasury spokesman, called for the Mr Swan to legislate bank charged mortgage rates to ensure they are not adjusted higher than Reserve Bank interest rate movements.
Mr Hockey said that the treasurer had warned that banks would feel the government’s wrath if they failed to keep rate rises within the RBA’s movements, but have so far failed to follow through.
'What levers are available? ... Obviously, legislation is part of it,' Mr Hockey said.
'But I would say ... none of the levers should be ruled out because, ultimately, the Australian people need to know where the banking system is going.' Mr Hockey added.
Mr Hockey went on to suggest other measures including cutting red tape, funding the residential mortgage-backed securities market, differentiating between support for smaller entities and the larger banks, varying fees paid to the bank regulator, and negotiating with the banks on new capital and liquidity rules.
Mr Hockey declined to say whether he had spoken with opposition Leader Tony Abbott before making the comments about Mr Swan’s lack of action.
Mr Hockey said that the treasurer had warned that banks would feel the government’s wrath if they failed to keep rate rises within the RBA’s movements, but have so far failed to follow through.
'What levers are available? ... Obviously, legislation is part of it,' Mr Hockey said.
'But I would say ... none of the levers should be ruled out because, ultimately, the Australian people need to know where the banking system is going.' Mr Hockey added.
Mr Hockey went on to suggest other measures including cutting red tape, funding the residential mortgage-backed securities market, differentiating between support for smaller entities and the larger banks, varying fees paid to the bank regulator, and negotiating with the banks on new capital and liquidity rules.
Mr Hockey declined to say whether he had spoken with opposition Leader Tony Abbott before making the comments about Mr Swan’s lack of action.
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