The Turnbull government will establish a royal commission into misconduct in Australia's banking and financial services sector.
Prime Minister Malcolm Turnbull announced the stunning backflip on Thursday after bank CEOs called on the government to establish an inquiry in a bid to end the uncertainty plaguing the sector.
Up Next
Bitcoin tops $10,000
- Video duration
- 01:17
More BusinessDay Videos
Government flips on banking inquiry
After months of political debate, Malcolm Turnbull has announced a royal commission into the banking sector.
"The speculation about an inquiry cannot go on," Mr Turnbull said.
"It's moving into dangerous territory where some of the proposals being put forward have the potential, seriously, to damage some of our most important institutions."
The royal commission will run for 12 months with a final report due by February 1, 2019.
The CEOs and chairmen of the Commonwealth, Westpac, National Australia and ANZ banks requested a "properly constituted inquiry" into the sector in an email sent on Thursday to Treasurer Scott Morrison.
It comes too amid mounting pressure on the coalition government from Labor and some rebel Nationals MPs pushing for the establishment of a royal commission into the banks.
The banks have consistently argued that further inquiries into the sector, including a royal commission, were "unwarranted" as they were costly and unnecessary distractions at a time when the sector faced significant challenges.
But in the email to Mr Morrison, they said in light of recent speculation, it was now "imperative" for the government to act decisively to deliver certainty to the sector, bank customers and the community.
"It is now in the national interest for the political uncertainty to end," the email says.
"It is hurting confidence in our financial services system, including in offshore markets, and has diminished trust and respect for our sector and people. It also risks undermining the critical perception that our banks are unquestionably strong.
"We now ask you and your government to act to ensure a properly constituted inquiry into the financial services sector is established to put an end to the uncertainty and restore trust, respect and confidence."
It is now in the national interest for the political uncertainty to end.
Big four banks
The banks said the inquiry should be led by an eminent and respected ex judicial officer; its terms of reference should be "thoughtfully drafted and free of political influence"; its scope should cover the community's core concerns; report back in a timely manner; and it must replace other ongoing inquiries.
The email was signed by ANZ chairman David Gonski and chief executive Shayne Elliott, CBA chairman Catherine Livingstone and CEO Ian Narev, NAB chairman Ken Henry and CEO Andrew Thorburn, and Westpac chairman Lindsay Maxsted and CEO Brian Hartzer.
Mr Morrison says the decision to launch a royal commission was "regrettable but necessary action to take control" to overcome the "damage" to the financial sector that had been done by repeated calls for an inquiry.
"We must continue to get on with it and I call on the parliament to get on with it and support these measures," Mr Morrison said.
Mr Turnbull had repeatedly denied any need for a royal commission after a series of scandals in the banking sector, but Nationals senator Barry O'Sullivan believed he had the numbers go ahead without cabinet approval in a move that could have destabilised the government. The Greens threw their weight behind a commission of inquiry on Wednesday after securing last-minute amendments from Senator O'Sullivan.
"A government's policy remains the same until it is changed," Mr Turnbull says when asked if this was a backflip for the government.
"The political environment has created a sense of inevitability about an inquiry ... We have to act in the national interest, protecting Australia's economic future."
The commission will cost $75 million - about $25 million less than the same-sex marriage postal survey.
It will examine both the large and small banks, superannuation funds and wealth managers. The person who will oversee the inquiry has yet to be appointed but it will be someone such as a former judge.
The commission will not be able to award compensation to victims of bad bank behaviour, but it will be able to make recommendations for a scheme that would enable compensation.
More to come
with BusinessDay
Read Again http://www.smh.com.au/business/banking-and-finance/big-four-banks-tell-government-to-set-up-inquiry-20171129-gzvlfr.htmlBagikan Berita Ini
0 Response to "PM Malcolm Turnbull announces royal commission into banking sector"
Post a Comment