This is the House of Representatives Standing Committee on Economics’ fourth report for the committee’s review of Australia’s four major banks.
In November 2016, the committee published its first report, which followed the first round of hearings in October 2016. The report contained 10 recommendations to reform the banking sector, including calling for new legislation and other regulatory changes to improve the operation of the banking sector for Australian consumers.
In a second report in April 2017, following hearings in March, the committee reaffirmed the 10 recommendations of its first report and made an additional recommendation in relation to non-monetary default clauses.
In a third report in December 2017, following hearings in October, the committee made four new recommendations regarding: dual-network debit cards and tap-and-go payments; the repricing of interest-only mortgages; comprehensive credit reporting; and AUSTRAC procedures.
The government and the regulators have commenced a significant financial sector reform agenda including recommendations made by the committee on reforms to the banking sector.
The committee's mandate from the government to review the banking sector is ongoing, and provides an important mechanism to hold the four major banks to account before the Parliament.
The fourth round of hearings in October 2018 focused on scrutinising the major banks’ response to the shocking revelations highlighted in the interim report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.