Why do some Australians hate their banks?
It’s not just the banks, but also their consumers.
This week, the Australian Financial System Inquiry has given the Government the green light to extend its inquiry into the systemic failures at the major Australian banks, with the findings to be released at the end of February.
The Government is already using the inquiry to attack those in the banking sector that have been critical of its plans to regulate the sector.
What’s in the report?
This week’s report, which has been in the public domain since January, is a major step forward in understanding how the Australian banking system works.
The inquiry was created in 2012 to look into systemic failures in the financial services sector and to ensure the Australian people had a clear understanding of what went on.
Its findings have been criticised by some critics, who say the report has been politicised and has failed to adequately examine the systemic failings of the financial system.
Read moreWhat is the inquiry?
The inquiry, set up by the Australian Banking and Financial Services Commission in 2013, has the power to investigate whether or not there is systemic or criminal wrongdoing in the Australian banks.
As the Financial Review reported earlier this year, there are several criticisms of the inquiry.
One of the most important is that it has been deliberately politicised.
The Government has already used the inquiry’s findings to attack critics of its banking reforms, and also to attack the Australian National University’s professor who was a key witness for the inquiry into systemic problems in the banks.
The report is now being used by both sides to attack each other.
How has the Government responded?
In the past year, the Government has also taken to attacking those who have been the target of the criticism.
The Coalition has called for banks to be regulated by the Commonwealth, saying that is what Australia needs to achieve.
Opposition Leader Bill Shorten has accused Labor of “playing politics” by questioning the integrity of the Government’s bank reforms.
“If we are going to regulate banks, the banks should have to be in the hands of the people who are actually responsible for running it,” he said.
Labor’s Treasury spokesperson James Ashby said he would be “delighted” if the Government “put in place a banking system that works for Australian people”.
In a statement, the Opposition said the inquiry has revealed that the “corporate elite” of the banks “are more likely to make mistakes than the average Australian”.
“It is shameful that a private sector bank is able to make billions of dollars a year by running a system that is not up to Australian standards,” Mr Ashby added.
Mr Shorten said that the Government needed to ensure that the public had a “fair look at what’s going on in the big banks” and that it was “better to do this with the oversight of the ACCC rather than the Federal Government”.
Why is the Government taking this on?
While there are numerous complaints about the banking reforms under the Government, it is not the first time the Government and the banks have come under attack.
In 2012, the then Opposition Leader Kevin Rudd had to backtrack on his previous claims that banks were too big to fail.
It was also during this time that the Australian Competition and Consumer Commission (ACCC) conducted an inquiry into how the banks were regulated.
Last year, it emerged that the banks had been granted permission by the Government to continue to offer loans at high rates of interest, despite the fact that the average consumer was losing up to 10 per cent of their savings in interest payments.
Why do some critics of the banking system hate me so much?
“I’ve got a pretty tough job to do,” Senator Scott Ludlam, a former independent MP and former Federal Treasurer, said in an interview with ABC News.
But he also pointed out that the Opposition was being attacked by those who were “playing” politics against him, and was calling for “a tougher, tougher regulator”.
“That’s what it’s all about, is getting on the right side of politics and being able to talk about what’s really happening in the market and what the big players are doing,” he added.
“That’s why you’ve got to have a tough regulator.”
The Federal Government has not commented on whether or where it plans to respond to the report, and the Government did not immediately respond to a request for comment from The Australian Financial Reviews.
Who is behind the investigation?
What has been revealed in the inquiry so far?
Read the full report, below:Read moreThe Federal Reserve has acknowledged the “significant systemic problems” that have “been identified” in the Federal Banking System, but said that “the system is in a state of disrepair”.
The Reserve has called on the banks to reform their business practices to improve the way they operate and to better monitor the riskiness of their lending practices.
Critics have also pointed to a “significant lack