SMALLER BANKS WANT A FAIR GO

SMALLER BANKS WANT A FAIR GO
FOUR regional banks have launched a joint submission to the federal government’s Financial System Enquiry, calling for a level playing ground.

Bank of Queensland (BOQ), Suncorp Bank, ME Bank and Bendigo and Adelaide Bank have provided recommendations to restore competitive neutrality for the benefit of consumers.

The report argues that regulations introduced during the Global Financial Crisis favour the big four banks, Commonwealth, ANZ, National Australia Bank and Westpac.

Suncorp CEO John Nesbitt says the minor players aren’t after extra funding, which caused the competitive disparity in the first place.

“We’re not advocating for government handouts or additional regulatory overlay because this type of intervention creates market distortions as evidenced by the funding and capital advantages afforded Australia’s largest banks.

“Our submission recommends changes to the regulatory settings which have created illogical competitive anomalies,” he says.

Recommendations include a 20 per cent risk weighting on residential mortgages, changes to the approval process and greater transparency of ownership structures.

BOQ managing director and CEO Stuart Grimshaw says the suggestions aim to provide long-term economic benefits.

“We also believe that our recommendations would help redistribute capital to the areas of our economy that are crying out for investment, such as small business and agribusiness.”

The first round of non-confidential submissions will open to the public on April 4. 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths (ASX: WOW) is looking to enhance its online marketplace ...

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Vet services business Apiam Animal Health (ASX: AHX) has gone ...

Scrap metal recycler Sims picks up Brisbane port site for $88 million

Scrap metal recycler Sims picks up Brisbane port site for $88 million

In order to acquire one of the few remaining Brisbane sites with de...

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

Just days after the sudden and unexpected death of Metricon founder...