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Turbull rejects Labor's calls for banking royal commission

Turbull rejects Labor’s calls for banking royal commission

(11 April 2016 – Australia) Following a call from the Australian Labor Party (ALP) for a royal commission into the banking industry, the Coalition responded saying it is little more than a “distraction” by the Opposition.

The Australian Prime Minister, Malcolm Turnbull said: “Bill Shorten’s call for a royal commission into the banking industry is just another distraction, just a thought bubble, to respond to the news of the week.”

Early last week, the Prime Minister had slated banks for failing to put customers first. On Sunday, he said cultural change was needed above legislative change.

“The critical thing here is that the high standards of putting the customer first, of ensuring that the trust of the community is justified,” Turnbull said.

“That requires leadership from senior bank managers and they are providing that leadership and they will provide more. We have a strong regulatory structure to do that.”

He said the Australian Securities and Investment Commission (ASIC) and the Australian Prudential Regulatory Authority (APRA) had sufficient powers to regulate the banking industry.

“It [ASIC] has banned people from industry, it has enacted fines, it’s a very active regulator,” Turnbull said.

The resources minister, Josh Frydenberg, told the ABC’s Insiders program on Sunday: “I just think this is a bit of populist politics. This is just a distraction from Bill Shorten.”

Speaking to Sky News, the Greens MP Adam Bandt was supportive of a royal commission into banks, saying: “We’ve been calling for it for a long time.”

In a statement to reporters, the Australian Bankers' Association (ABA) rejected Labor’s push, saying it would be “unnecessary and a waste of taxpayer funds”.

The association's chief executive Steven Munchenberg said “The outcomes of those inquiries are either being implemented or, like the former government’s Future of Financial Advice reforms, are still taking full effect.

“These measures respond to instances that occurred in the past and should be given a chance to take full effect before another inquiry is contemplated.”

The ABA boss added that a royal commission would have “international ramifications” for Australia.

“Banks are particularly concerned that a call for a royal commission will send alarm signals to international investors about Australia at a time of global volatility,” he said.

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