Big bank review released
The final report from the banking royal commission has been handed to the Federal Government ahead of its public release.
Royal commissioner Kenneth Hayne QC has completed the final report from the $75 million, year-long inquiry, which carries a range of recommendations for reforms across the banking, superannuation and financial services industry.
The report should be made public at the close of the local stock market on Monday.
Key revelations from the inquiry included the $1 billion fees-for-no-service scandal, charging dead people fees, aggressive sales tactics of insurance salespeople, mistreatment of farmers, issues faced by small business and scandals relating to CBA’s CommInsure arm.
Australian Banking Association CEO Anna Bligh expects some sobering reading.
“There's no doubt that the banking sector and the member banks have heard the message from the commission already loud and clear that customers need to come first, that reputation matters and that ethical banking is important,” she said this week.
Ms Bligh said banks have a lot to do.
“What I'm hoping for, and what I think the Australian people deserve, is a report that is carefully thought-through, is rigorous and is workable, and will become a blueprint for how to build the best possible banking system.”
University of Sydney economics expert Associate Professor Eliza Wu says it could have have a monumental impact on Australian finance.
“Hopefully it will also provide clear guidance on how to enhance the integrity of the financial services industry,” she said.
Citi analysts have already described 2018 as a damning year for Australian banks.
“2018 was the most difficult year in a generation, as the sector faced the indignity of a royal commission, a material contraction in residential property prices, unprecedented regulatory oversight, record fines and compensation, as well as meaningful senior management and board turnover,” it said in a recent report.