The Banking Royal Commission has created mass uncertainty and a lack of faith in Australia’s Big Four banks, as has been reflected in their faltering share prices.
And this is entirely understandable, for the royal commission did uncover a lot of fraudulent practices with customer’s entrusted money.
The final commission report will be given to the federal government today. Next week, it is set to be released to the general public.
Before this, however, Treasurer Josh Frydenberg — on behalf of the government — seeks to send out a response on the report that will aim at restoring public faith in banks, as well as preventing a credit squeeze.
Frydenberg to give an encouraging report
Financial services royal commissioner Kenneth Hayne QC is responsible for delivering the report to Governor-General Sir Peter Cosgrove in Canberra.
As AAP reports, Bureaucrats will then work to the bone in preparation for Frydenberg’s release of his findings. These are due on Monday at 4:10pm, just after the Australian Stock Exchange ceases trading for the day.
In it will be words of encouragement as to the positive change this royal commission has brought to our banking sector.
Frydenberg says maintaining free flow of credit from lenders ‘is critical to the health of the Australian economy’ as the coalition deals with which of the report’s recommendations to act upon.
He told The Australian Financial Review that if the Australian public ‘become afraid to lend simply because the consequences of making a loan that goes bad, our economy will suffer.
‘It’s all about getting the balance right, that is what is important to setting up the regulatory framework.’
Bowen calls it a cover up
Prime Minister Scott Morrison seems to be sharing Frydenberg’s sentiment, telling both The Sydney Morning Herald and The Age:
‘I will be very mindful that I want to see the oil that lubricates our financial system — which is access to credit — continues to flow, otherwise the consequences would be quite significant.’
But Shadow Treasurer Chris Bowen doesn’t agree with this positive spin, believing there is no room to forgive bad conduct or criminality.
As he told AAP, Bowen insists that Frydenberg just ‘wants to deny Australians the right to see the final report’ in order to hide Morrison’s ‘mismanaged banking policy’, noting that Mr Morrison voted dozens of times against a royal commission.
But, as Frydenberg also pointed out, it is exactly this type of scepticism that the Coalition is seeking to alleviate with the treasurer’s findings report:
‘Trust is at the core of our financial system and, as we’ve seen, once it’s lost, it’s not easily regained.
‘Consumers need to be able to trust that the individual or the institution they are dealing with is putting their interests first, second and third.
‘The royal commission has shown that too often this has not been the case.’
But these conscientious actions from our government show us that right now, trust is now their top priority.
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