The Opposition and the Greens will are set to turn up the heat over the Government on the topic of banking reform, with separate bills designed to capitalise on community anger over recent interest rate rises and improve competition in the sector.
Greens’ leader Bob Brown announced over the weekend that the Greens’ lower house MP Adam Bandt will introduce a private member’s bill into Parliament this week seeking to cap exit fees, force banks to introduce a “fair price” home loans and eliminate the standard $2 ATM fee.
The Greens also want to put a two year ban on the banks raising rates by more than the RBA.
Meanwhile, Opposition small business spokesman will take the lead for the Liberals by introducing a plan to target so-called price signalling by the major banks, where they essentially warn the market (and by extension, each other) about forthcoming rate rises.
But Brown yesterday called on the Coalition to back the Greens bill.
“Joe Hockey has been really strong on this. He’s talking about the Government having sand kicked in its face by the banks while the Government does nothing,” Brown told Nine Network.
“Well, now I put a direct challenge to Joe Hockey, and to Opposition Leader Abbott, to support the Greens in preventing the banks from doing it again. We can legislate to do it. Sound and fury’s not good enough. This is hurting people.”
Brown’s comments came after NAB and Westpac joined Commonwealth Bank and ANZ in raising rates well above the 25-basis point official interest rate rise handed down by the RBA on November 2.
The outcry against those rates last week forced Treasurer Wayne Swan to announce he will unveil a package of banking sector reforms in December.
It is expected the Government will also take aim at price signalling and may also look to abolish exit fees. NAB and ANZ have already abolished exit fees.
”I’ll soon be announcing a carefully considered, effective plan to promote more competition and give people a fair go,” Swan said yesterday.
”The banks shouldn’t mistake our methodical approach for a lack of determination to do even more to make the banking system work for Australians.”
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
