Login
ISCOVER
Australia's prudential regulator has been reminded that it doesn't need government approval to implement new banking rules.
The current rules on risk weighting allow the big four banks to hold less capital than the non-majors, which the smaller lenders regard as unfair.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The David Murray-led Financial System Inquiry recommended a narrowing of the risk weighting used by the big four banks and the smaller lenders.
Mark Degotardi, chief executive of the Customer Owned Banking Association, said it was time to act now the debate was over and the independent umpire had reached his decision.
"While some of the Murray recommendations require a government response and legislation, the Treasurer has rightly indicated that the capital reforms are a matter for APRA," he said.
"This takes politics out of the regulatory capital reform agenda and means the necessary changes can and should be implemented expeditiously."
Mr Degotardi said APRA has a great opportunity to demonstrate its commitment to competition by making life easier for Australia's smaller lenders.
"Customer-owned banking institutions are ready and willing to take on the major banks in home lending and other consumer banking markets," he said.
Mr Degotardi said the customer-owned banks wanted to reverse the "trend of increasing dominance" of the big four.
"We can't let the opponents of reform bog down the process with an endless cycle of debate and denial," he said.
