The Financial System Inquiry’s final report is good news for consumers, according to the Customer Owned Banking Association (COBA).
Acting COBA chief executive Mark Degotardi said the Murray report delivers a high-quality reform blueprint for the financial system that will promote competition and choice, and ensure a better deal for consumers.
“The Murray recommendations on bank capital will make the entire system stronger while getting rid of anti-competitive distortions that benefit the biggest banks,” he said.
“If the major banks keep threatening to hit borrowers with higher interest rates, customer-owned banking institutions are only too happy to welcome new customers.”
Mr Degotardi said mutual banks just want a fair go from the regulatory framework so they can continue providing trusted and customer-focused financial services.
“The Murray report highlights the importance of culture in financial firms and the breakdown of trust. The customer-owned model has trust, fairness and a consumer focus at its core,” he said.
“We particularly welcome the Murray recommendations to improve regulator accountability and to strengthen the focus on competition by reviewing the state of competition in the sector every three years.”