Labor puts politics ahead of policy in responding to banking Royal Commission

Australia vows to clean up finance sector

Mr Thorburn said on Tuesday he is "more determined than ever" despite a report that slammed the banking industry and expressed serious concerns about his leadership, and that of NAB chairman Ken Henry.

The recommendations from the inquiry heard misconduct involved charging fees to the accounts of dead people and cash bribes being paid over the counter.

"I am disappointed that the commissioner formed this view".

"We led the sector in calling for the Royal Commission to be held", Henry said, referring to a letter to the government he personally drafted, asking for input from then-Treasurer Scott Morrison before sending the final official version. I still don't know ...

Insurer expectations that the Banking Executive Accountability Regime (BEAR) would eventually be introduced more widely were realised, with Commissioner Hayne proposing that it should apply to other institutions regulated by the Australian Prudential Regulation Authority.

Not really. While the industry's worst fears didn't materialize in Commissioner Kenneth Hayne's final report, released February 4, banks had already made some sweeping changes. The Board and I have reflected deeply on those and other issues and, as I have said previously, we take them very seriously. Do you accept that the board should have stepped in earlier?

Henry: I wish we had.

Dr Henry dismissed suggestions from the royal commission that he seemed unwilling to accept criticism of how the board dealt with issues like charging fees for no service. At the same time, former competition regulator Graeme Samuel will conduct a capability review of APRA, and the government will set up an independently chaired oversight body to report on the two regulators' performance.

Mr Booth says the royal commission has highlighted the need for high standards across the financial services sector.

"We view the release of the final report as incrementally positive for the major banks", says Morgan Stanley, "because there were no unexpected, material, adverse outcomes".

"I'm talking with you to try to communicate that I know what the plan should be and I'm committed to seeing it through".

"We have said we are not prepared to accept good intentions where urgency, consistency and discipline is required".

In a statement to the Australian Securities Exchange on Tuesday morning, both said they were planning to stay on, with Thorburn announcing that he had cancelled his planned long-service leave, which had been scheduled to continue for the rest of the month. "We are the only bank to publicly release our assessment, which clearly outlines 26 areas we are focussing on to be a better bank".

NAB chairman Ken Henry addresses NAB's 2018 annual general meeting in Melbourne on Wednesday, December 19, 2018.

HE GOT the premier's job after Barry O'Farrell came a cropper with a bottle of undeclared Grange, now Teflon Mike Baird is in a box seat to take over at NAB after his boss got a roasting from royal commissioner Kenneth Hayne.

While the changes are likely to make the financial sector more liable to be punished for violations, banks in the world's fourteenth-biggest economy have been spared any enforced breakup or interference in the way they choose to lend money.

"Overall, my fear - that there may be a wide gap between the public face NAB seeks to show and what it does in practice - remains".

Related:

Comments


Other news