Mutual lender CUA says the government’s response to the Financial System Inquiry (FSI) will help promote a competitive and diverse banking sector.
CUA chief executive officer Rob Goudswaard has applauded the government’s move to accept the majority of recommendations that were handed down in late 2014.
“[The] announcement by the government is good news for customers and will continue to enhance the integrity, competition and transparency in our financial system in Australia,” Mr Goudswaard said.
“I’m pleased to see there will be a stronger focus on competition in the sector, through the inclusion of competition in ASIC’s mandate and also through the commitment to review competition in the financial system by the end of 2017.”
Mr Goudswaard acknowledged the steps the government and regulators have already taken in response to recommendations.
“The government’s decision earlier this year to not proceed with a levy on deposits was a sensible outcome, which was in the best interests of Australians and customer-owned institutions like CUA,” he said.
“Likewise, I’m pleased to see the government has endorsed the steps already taken by APRA towards requiring the majors to hold more capital against home loans and the release of a discussion paper on capital levels for ADIs. Both of these are positive outcomes for consumers and customer-owned lenders like CUA.”
Looking ahead, Mr Goudswaard said the group will continue to seek further details on how some of the proposed actions will impact CUA, including changes to the definitions surrounding term deposits.
“We look forward to continuing to work closely with industry stakeholders, regulators and the government on implementing these measures so Australians can continue to enjoy a strong, secure and competitive financial services landscape,” he concluded.