Finance & Banking

What a debacle… there is no doubt that at a minimum an independent inquiry into the banking system and especially financial advice and its relevance to profit is a must. The losses to the public have been staggering and run into a billion plus over many years. That is the money of mums and dads.

Reforms are required in the areas of rate differentials, fees and charges,advice & investments and responsible banking practices. In my own opinion nothing less than a Royal Commission with full legal authority will bring our banking under control. However we do require a stable banking system, I dont believe an RC would destabilize the banking system, in fact it woul dbrng higher credibility. 

The banks are too selective in how they support business…small business does not have enough support from the banks and banking system. The banks were given support by the Australian government during the GFC and they have not repaid the trust of the public. It was our money that gave them the ability to work their way through the GFC.

I can speak about this given my being a part of 2 senate banking inquiries. Of which both in my opinion failed to deliver suitable reforms. I was also on the committee for mortgage managers in the MIAA and advised the treasury of possible failures given the GFC starting in 2006-2007…I was basically informed I didn’t know what I was talking about…we all know how that evolved into a very expensive exercise for the Australian public.

We need to re-establish and charter a Federal lending authority to assist and develop business and innovation projects. What is the point of having an innovation program devoid of funding… only to find multi-billion dollar project/ ideas and companies to go overseas…many at start up stage simply because the funding is not here. Not because it isn’t here, it not here because of a negativity to start-up funding being a field of government interest.  I would re-establish the AIDC and fund it with $1b per annum for business (across all fields) and ideas that were able to show viability.

 The RBA needs investigation and if necessary changes in its policy guidelines as its policies always seem to be 3-9 months behind the point where the impact is. I am not picking on the board or the RBA personally. I see their impact as being delayed and needing change in when it is best to act. I also see some advisory appointments as necessary to balance this timing problem. These can be from social and institutional groups or organisations.

Both ASIC and APRA have been neglectful (possibly underfunded) in their taking on of the banks and other institutions regarding practices. Any enquiry should have as a part of its terms of reference the ability to look into this area.