Banking Cartel

Dear Editor, We definitely agree that the chief RBA chief and Chief Banking Ombudsman Tregillis are both doing an excellent job. Yours sincerely Edward/Eddie Hwang Blogger: Bloger Dashboard Behaviour of banks has been appalling: RBA chief Philip Lowe Shane Wright, Economics EditorThe West Australian Saturday, 18 August 2018 8:01AM RBA's Lowe Sees Rates Steady `For a While Yet' Australian central bank chief Philip Lowe said interest rates are likely to remain at a record low "for a while yet" while lamenting the local currency's resilience. Reserve Bank governor Philip Lowe has demanded the nation’s banks look after their customers’ needs rather than swell their own pay packets, labelling revelations out of the royal commission as appalling. Dr Lowe, giving evidence to a parliamentary committee, backed the commission as necessary “disinfectant” for the clear failings of the nation’s banks. The commission has spent the past fortnight focusing on the superannuation sector with revelations of fees being taken from dead customers, conflicts of interest within banks and of delays moving customers to low-fee superannuation funds. Dr Lowe said some of the revelations had gone to the heart of banking, eating away at public trust in them. “I’m incredibly disappointed and in many cases I have been appalled at the behaviour that has come out of the royal commission,” he said. Dr Lowe said the commission had revealed major dysfunction in the remuneration systems within banks. He said that rather than acting in the best interest of clients, banks instead sought to look after themselves and the financial benefits flowing to senior executives. “Top of mind has been maximising financial returns and that is very problematic,” he said. “We need to rebuild trust and we need to have a very strong focus on delivering service rather than sales.” The royal commission was only ordered by Malcolm Turnbull after rebel MPs threatened to start their own inquiry. Both he and Treasurer Scott Morrison argued a royal commission would undermine confidence in the banking sector. But Dr Lowe said he had no issues with the commission, arguing it had been a force for good. “Sunlight is acting as a very good disinfectant here and we need this disinfectant and it is actually working,” he said. “The community is getting a better understanding and will get better outcomes in the financial sector as a result of this.” Opposition financial services spokeswoman Clare O’Neil said Dr Lowe’s comments showed the importance of the royal commission. TOPICS