National TV campaign highlights need for a stronger, fairer banking system
Consumer advocates of a stronger, fairer financial system have launched a new national campaign today that asks why billions of dollars in subsidies are given to Australia’s big four banks, supported by the Australian taxpayer.
With an interim report into Australia’s financial system just weeks away, the Customer Owned Banking Association campaign questions the cost to the community of Government guarantees to four of Australia’s most profitable companies.
COBA CEO Louise Petschler says Australians deserve a much more competitive and fair banking system.
“Australians need to understand the Financial System Inquiry is not just another Government inquiry.”
“That’s why we’ve launched our campaign for a stronger, fairer system. This is a once in a generation opportunity to put the interests of customers first and produce a more competitive banking market.”
The COBA TV commercial highlights the problem of our ‘too big to fail’ banks, where the big four would be bailed out by the government in a crisis.
COBA argues the big four should pay something for this guarantee, which would ultimately have to be funded by taxpayers.
A report released earlier this year by Morgij Analytics estimated the subsidy to be worth $2.5 billion.
“We need a better banking system – one that stops delivering unfair advantages to the big four,” Ms Petschler said.
“If the Government’s FSI does not deal with this unfair advantage it will not deal with the key issue facing consumers and competition in the Australian banking sector,” Ms Petschler said.
“Let’s not put ‘too big to fail’ in the ‘too hard to fix’ basket. We must take the opportunity to put consumer interests first, for a stronger, fairer, banking system.”
The national campaign continues COBA’s advocacy for a better financial system, which has included a detailed submission to the Financial System Inquiry.
The campaign launched today on television, radio, online and in print uses four large skyscraper buildings growing bigger and bigger to highlight the reduction of competition and choice for banking consumers.