Royal Commission threat galvanises us: ABA
8 March 2017
https://www.rfigroup.com/rfi-group/news/royal-commission-threat-galvanises-us-aba
The shadow of a Royal Commission into banking has “undoubtedly galvanised” the sector, Australian Bankers' Association (ABA) chief executive Steven Munchenberg told the House of Representatives Standing Committee on Economics.
Fronting the inquiry on Wednesday afternoon, the ABA’s outgoing chief, however, rejected the Committee’s deputy chair, Labor MP Matt Thistlethwaite’s assertion that the threat of a Royal Commission was the prime motivator behind the association’s "Better Banking" campaign.
The campaign launched in April 2016 included a six-point plan aimed at delivering better products and services to customers
Thistlethwaite, after doing the math on the timing of the association’s launch - which coincided with Labor's calls for a review -
asked the ABA boss if “the reason why you launched the campaign (was) to avoid a royal commission?"
“There is no doubt and I’ve said so publicly, that Labor’s calls for a Royal Commission have galvanised the industry,”
Munchenburg said.
“We were working on all of these things - I can assure you - it is not possible to get this very diverse and highly competitive industry to agree on a six-point plan in a matter of weeks. We were working on all of those things, earlier on. I have said all along that the call for a commission undoubtedly galvanised us.”
On its toes
According to the bank’s top lobbyist, the threat of a royal commission is “something that is keeping the industry on its toes.”
“It is not the primary thing that we are responding to, the primary thing is we want to rebuild trust and confidence
in the banking system and that means we need to be doing a better job for our customers.”
His words echo those of Westpac chief and former ABA chairman, Brian Hartzer, who on Wednesday morning, told the inquiry, “the best way to restore confidence is to address the very real issues that get raised, take action on them and fix them.”
“We think that a Royal Commission would be very expensive for all involved and would not have the benefit of immediate action,” Hartzer added.
“Ultimately it’s for government to decide if a Royal Commission is appropriate but our view is clear - and I think shared by my peers in the last couple of days - that we don’t think it’s necessary.”
Munchenberg, in one of his last public appearances as ABA chief before ex-Premier of Queensland Anna Bligh takes the helm in April, told the inquiry the nation has a strong banking system but admitted it is “not perfect".
“We have not always met the standards we set for ourselves, or the community sets for us,” Munchenberg said in his prepared statement.