Banking royal commission should focus on an honest and fair financial system

Comparison website RateCity has welcomed the federal government’s decision to hold a Royal Commission into Australia’s financial sector.

RateCity CEO Paul Marshall said the only way to restore public trust in our financial sector was through a Royal Commission.

“Australians rely on financial products every single day," Marshall said.

"They hold the keys to our homes. They are the keepers of our retirement.

“We all agree banks are a fundamental to our economy but they are also fundamental to our society. We expect our banks to lend responsibility and help us manage our finances.

“Every Australian is entitled to financial products that are honest and fair. The government is right to focus on this point.

“We would like to see changes that make financial services more transparent and easy-to-understand. Any recommendations should focus on increasing competition and reducing costs for consumers, not the reverse.

“Australia’s big banks have been at the forefront of a long list of scandals and wrongdoings for too long. We’re well past the mea cupla stage.

“It’s time to look at the culture inside our banks and make sure it is in line with community values,” Marshall said.

Mr Turnbull’s announcement comes after the chief executives of the big banks, the Commonwealth, Westpac, National Australia and ANZ banks requested the government step in to  aunch an inquiry.

It was in an email sent to Treasurer Scott Morrison yesterday.

Treasurer Scott Morrison dubbed the Royal Commission a “regrettable but necessary action”.

Leader of the opposition Bill Shorten took to Twitter to take a dig at Prime Minister Malcolm Turnbull.

He tweeted "Is Malcolm Turnbull the last person in Australia who doesn't see the need for a Banking Royal Commission?"

Heritage Bank welcomed the Royal Commission into the banking sector, however Heritage Bank CEO Peter Lock said that the customer-owned banking sector, which included Heritage, should not be dragged into an inquiry based on the alleged wrong doings of the big banks. 

“The whole issue of the need for an inquiry into the banking sector has been used as political football for far too long,” Mr Lock said.