Powered by MOMENTUM MEDIA
subscribe to our newsletter

Mutuals pressure APRA to implement capital reforms

Australia’s customer-owned banks have urged the prudential regulator to implement bank capital reforms “without delay”.

“We’ve had the debate, the independent umpire has laid down the blueprint, so let’s get on with making the banking system stronger and more competitive,” the Customer Owned Banking Association's (COBA's) acting CEO, Mark Degotardi, said of the Financial System Inquiry's (FSI's) recent recommendations.

“While some of the Murray [FSI] recommendations require a Government response and legislation, the Treasurer has rightly indicated that the capital reforms are a matter for APRA,” Mr Degotardi said.

“This takes politics out of the regulatory capital reform agenda and means the necessary changes can and should be implemented expeditiously,” he said.

Narrowing home loan risk weight differences is a key priority of the Murray Report’s recommendations to promote competition.

Advertisement
Advertisement

PROMOTED CONTENT


The report said competition and competitive markets are at the heart of the inquiry’s philosophy for the financial system and the inquiry sees them as the primary means of supporting the system’s efficiency.

The report warned that high concentration and increasing vertical integration in some parts of the financial system have the potential to limit the benefits of competition in the future.

“The Murray Report has observed that our regulators have not focused sufficiently on competition,” Mr Degotardi said. “APRA now has a great opportunity to demonstrate its commitment to promoting competition.

“It’s time to give smaller competitors a fair go.

“Customer owned banking institutions are ready and willing to take on the major banks in home lending and other consumer banking markets," he said. “We want to reverse the trend of increasing dominance of the major banks.”

 

Mutuals pressure APRA to implement capital reforms
mortgagebusiness

Latest News

Preliminary ABS data has revealed that the value of residential construction work done has declined in the September quarter to its lowest l...

Westpac and its subsidiaries have reduced its owner-occupied and investment property fixed home loan rates, effective 24 November. ...

Defence Bank has appointed two new board directors and announced the retirement of long-term director Lieutenant Colonel Craig Madden. ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Responsible Lending - what could lie ahead for lenders, brokers and borrowers?

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.