Fair go needed for customer-owned banking
The Customer Owned Banking Association has identified a “top 10” list of failures of financial sector regulation to deliver competitive neutrality for the customer-owned model.
“We can’t be complacent about diminishing competition and choice in our highly concentrated banking market,” said COBA CEO Louise Petschler.
“The regulatory framework is letting down Australian banking consumers if it is hampering competition and we say that is exactly what is happening.
“Credit unions, building societies and mutual banks provide a genuine alternative to the major banks and we seek no more and no less than competitive neutrality for our model.
“If no action is taken to even up the playing field the major banks will continue to get bigger and to increase their already dominant share of the banking market. It’s a mistake to confuse the strength of the big four banks with the overall health and sustainability of our banking system.
“Under the competitive neutrality principle, customer-owned banking institutions should be able to compete on equitable terms with their large listed competitors without being handicapped by unfair treatment or subsidies to competitors.
“This is a key issue for the Financial System Inquiry.
“To promote debate and draw feedback we have issued a discussion paper for our members and other stakeholders outlining examples of failures to provide competitive neutrality.
“These failures include: major banks’ unfair funding cost advantage; rules on regulatory capital; rules on regulatory liquidity; franking credits; rules on ‘banking’ terminology; disclosure and marketing requirements; and, financial sector levies.”
For more information or media interviews please contact:
Daniel McDougall, Senior Manager – Media and Communication
02 8035 8444 or 0407 637 541, [email protected]