Banking watchdog “needed”

Australia’s banking system can be seen – effectively – as a cartel.

In a small country like Australia, even that has its advantages.

Bank failures are not common in this country.

But there are issues, too.

And a powerful parliamentary committee is recommending the appointment of a banking ombudsman to deal with them.

The recommendation, from the House of Representatives Committee on Economics, follows months of investigation.

The committee’s chairman, Craig Thomson, said 12 recommendations had emerged from this work.

The committee also recommended, for example, that the Australian Competition and Consumer Commission be given specific powers to address issues of concern in markets and regulated sectors, like banking.

“We want to see the ACCC on the job,” Mr Thomson said, “looking at competition all the time, not just during mergers and acquisitions.”

“We want to see them better able to stand up for consumers,” he added.

The committee also recommended:-

• regulating unsolicited credit card limit increases
• inclusion of credit cards in the account switching package
• traansparencey of exit fees on mortgage products and
• reform of Australia’s credit reporting system.