The Federal Treasurer, Scott Morrison, says the Government expects the chief executives of Australia’s major banking and financial services institutions to appear in person at least once a year before the House of Representatives Standing Committee on Economics.
Fleshing out what appears to be the Government’s alternative to calls for a Royal a Commission into the Banking and Financial Services industry, Morrison announced on Friday that he had written to the Chair of the House of Representatives Standing Committee on Economics, David Coleman, to request that the committee undertake at least an annual inquiry into:
- The performance and strength of Australia’s banking and financial system;
- How broader economic, financial, and regulatory developments are affecting that system; and
- How the major banks balance the needs of borrowers, savers, shareholders, and the wider community.
The Treasurer said the four major banks would have to appear at least annually before the Committee and specifically stated that “the Government expects that the chief executive officers of the banks will themselves appear”.
Reinforcing the fact that the banks were operating under a social license, Morrison said the new process represented an important opportunity for the banks “to explain how they deal fairly with their customers and, in turn, build confidence in their institutions”.
“Banks operate under a social license and have responsibilities to the Australian public. We expect them to have high standards,” he said.
