A “poor compliance culture” exists at the four major Australian banks, NAB, ANZ, CBA and Westpac, and senior execs must be held to account, a parliamentary inquiry has found. According to a report by the House of Representatives economics committee, it is unacceptable that no senior exec had lost their job following various scandals. “The major banks have a ‘poor compliance culture’ and have repeatedly failed to protect the interests of consumers,” the report said. “This is a culture that senior executives have created. It is a culture that they need to be held accountable for.”

The report also called for a unit to monitor competition in the banking sector and report to the federal treasurer every six months. “Australia’s banking sector is an oligopoly. The major banks have significant market power that they use to protect shareholders from regulatory and market developments,” committee chair David Coleman said. “Despite this market concentration, under our current regulatory structure no entity is tasked with regularly making recommendations to improve competition. This must change.”

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by Scott Thompson
Scott is Senior Editor at IBS Intelligence. You can follow him on Twitter and contact him at: Scott.Thompson@ibsintelligence.com