Bank reform updates

The bank reforms package snapshot:

Empower consumers to get a better deal.

The government has proposed a number of bank reform initiatives aimed at helping Australian consumers and small businesses get a better banking deal, including:

• Banning exit fees on new home loans
• Conducting an inquiry into account number portability
• Price signalling crackdown
• Enhancing ATM fees transparency and competition
• Mandatory fact sheets for new home loan customers
• Credit card legislation geared towards responsible lending practices
• General banking awareness campaign

Support smaller lenders to compete with the big banks

• Build a new pillar in the banking system by supporting the mutual sector, extending the government deposit guarantee indefinitely
• Further investment in the residential mortgage-backed securities (RMBS) market

Secure the long-term safety and sustainability of the financial system

• Allow banks, building societies and credit unions to issue covered bonds
• Develop a corporate bond market

Bank Reforms: Read the full package

The Opposition Reaction: Hockey says bank reforms a failure

Opposition treasury spokesman Joe Hockey has said that the banking reform package is merely designed to provide the Government with political relief.

Hockey believes that the move to scrap exit fees would backfire.

He has stated that while the Coalition will support parts of the Government's banking package, he will hold the Treasurer to his promise to lower interest rates and reduce bank fees.