The ABA says that the past few days of hearings at the Royal Commission have been sobering for the entire industry.
The issues raised have been unacceptable and do not meet the high standards the community rightly expects of banks.
Australia’s banks are committed to tackling misconduct head-on and strongly back the reforms proposed today by the Turnbull Government to penalise bad conduct within the industry.
A stronger range of penalties for misconduct is vital to tackling criminal and unacceptable behaviour by individuals and corporations.
The industry has supported the strengthening of the penalties regime for misconduct since the Federal Government announced its review 18 months ago, as an outcome of the Financial Services Inquiry.
Before today’s announcement, banks had already recognised the need for change and have put in place a rigorous conduct background check for bank employees to stop those with a history of misconduct simply moving from one institution to another.
Many of the issues raised over the last few days are the subject of investigation with changes already underway in the sector to ensure cases such as these cannot reoccur. The industry expects that further changes should and will be made following the final recommendations of the Commission.
