Royal Commission call into Australian Banks has Financial Sector in a Panic

In the wake of Ireland charging an ex Irish Anglo Bank boss over his part played in the GFC, and the elite’s PR mess with Mossack Fornseca and Panama papers, the Australian Big Four Banks are now in a panic.

A call for a Royal Commission by the Labor party has been met with criticism and attack by the Australian Bankers’ Association. “We don’t understand what this royal commission is meant to achieve,” ABA chief executive Steven Munchenberg said.

“Banks are particularly concerned that a call for a royal commission will send alarm signals to international investors about Australia at a time of global volatility.”

However, the pledge by the Labor party if elected in the coming election, will provide a more comprehensive review over the continual failings of the banking system over recent years.

Munchenberg acknowledges the Australian Banking system has failed customers in the past, and that there were incidents left unanswered, but that a royal commission into the financial industry will damage its reputation amongst international investors.

His argument is that “Australian banks are already highly regulated,” and that the “banks support the core of the economy and highly value their social license to operate.”

Labor leader Bill Shorten defends the party decision, saying that public confidence has taken “hit after hit” with scandals in the banking and financial industry. Increasingly, he adds, that tens of thousands of Australians have been left out of pocket.

In the move for a Royal Commission, Shorten has won support from the Industry Super Australia (ISA); worried that the banks could “infect” the consumers’ confidence in compulsory superannuation savings.

“Over recent weeks, months and years Australia’s major banks have faced repeated allegations and evidence of wrongdoing that has reduced public confidence in banking and finance,” ISA have said.

The Royal Commission, if it goes ahead, will span over several years of investigation and a possible cost of $53 million dollars, before it will be able to deliver its findings.

This article (Royal Commission call into Australian Banks has Financial Sector in a Panic) is a free and open source. You have permission to republish this article under a Creative Commons license with attribution to the author AnonWatcher and AnonHQ.com.