Sunday, December 5, 2010

More bank reform leaks

From the SMH today:
Treasurer Wayne Swan will this week unveil his long-awaited package of measures to rein in the banks and boost competition in the sector.

A senior Labor source confirmed Mr Swan would present his reform package to cabinet when it meets tomorrow. He will then make final adjustments to the package, which is designed to break the dominance of the four major banks following a series of super-sized interest rate rises, over and above the Reserve Bank's official cash rate.

Following a government crackdown on unfair mortgage exit fees, the Australian Securities and Investments Commission has unveiled a new online calculator that helps borrowers to work out if they will save money by switching home loans. It works by comparing any loan on the market and generating any potential savings if the user wants to switch.

The Christmas reforms are expected to be delivered to the public on Thursday or Friday.

The Gillard government's banking reforms are expected to include:

- Strong measures for credit unions to help them become the fifth pillar of the banking sector.
- Steps to curb excessive bank fees and charges so they reflect costs and not contribute to bank profits.
- Abolishing mortgage exit fees.
- Tax breaks on deposits to replace complex franking credits.

The government has clearly been using BusinessDay to leak its intentions vis-a-vis bank reform. So this looks a more reliable timetable than that suggested Friday by BankingDay.

Interestingly, the description of the reform package provided here is more conservative than those provided earlier in the week by BusinessDay. Either the journo has mistakenly truncated the list, removing reference to securitisation reforms, or the reforms are more conservative than earlier mooted.

1 comment:

Anonymous said...

Won't the security reforms come under the "Strong measures for credit unions to help them become the fifth pillar of the banking sector" header?