FSI must lay foundation for economic growth

The Financial System Inquiry is an important step towards building confidence in Australia’s economic future, according to the Australian Bankers’ Association (ABA).

ABA chief executive Steven Münchenberg welcomed the release of the FSI’s final report as a comprehensive health check of the financial system aimed at ensuring it serves Australia’s economy well in the future.

“Our major priorities for the inquiry were ensuring all parts of the economy are adequately funded, promoting strong competition in banking markets, striking the right regulatory balance that reflects Australian conditions and ensuring technological innovation brings consumers the benefits of better banking,” he said.

Mr Münchenberg said the ABA acknowledges the aspects of the inquiry’s report that address these issues.

“Measures to increase the range of funding options, particularly for small businesses, and improvements to the retail corporate bond market will help strengthen the funding of the economy,” he said.

“We also support the recommendation to remove the tax on savers proposed by the previous government to pre-fund the deposit guarantee.”

Mr Münchenberg added that the ABA also welcomes proposals to improve product disclosure for consumers as well as the quality of financial advice.

“Underpinned by robust consumer protections, the law needs to enable consumers to have easy, affordable and reliable access to quality financial advice,” he said.

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