Bank behaviour ‘disappointing’, says shadow minister

Speaking to a roomful of financial services professionals at the FSC BT Political breakfast series on Friday, Senator Katy Gallagher emphasised that Labor’s decision in April to call for a royal commission into the banking and financial sector “was not taken lightly”.

The shadow minister for small business and financial services and senator for ACT emphasised that the decision was made with the aim of ensuring that any systemic issues in the industry are addressed in a “thorough and transparent way”.

“I know that the Financial Services Council (FSC) and everyone here today feels disappointed and let down by the instances of misconduct and unethical behaviour that have come to light,” Ms Gallagher said.

“While I know that the FSC is on the record as opposing a royal commission, I know we share a common understanding of the importance of strengthening consumer confidence and trust in our financial services sector, particularly given that all Australians rely on it.

“Despite our difference on the issue, we do recognise the proactive steps that the FSC is taking to improve trust and consumer outcomes,” she concluded.

[Related: Mistrust of banks has become ‘entrenched’, says Turner]