A new report highlighting the growing power of Australia’s major banks should focus public attention on the policies of all candidates in the upcoming federal election, the Finance Sector Union said today.

The Australia Institute will today release Money and Power: The case for better regulation in banking questioning the lack of regulation and policy intervention in Australia’s banking sector.

The report reveals that big four Australian banks are reaping underlying profits of around $35 billion per year, including $20 billion in ‘super profits’ solely attributable to their market power.

FSU Policy Director, Rod Masson said the report raises questions about whether the distorted competition and extreme profits of Australian banks are in the public interest.

“In an election where the economy is rightly a key issue, the policies on regulation of our major banks deserves greater scrutiny.

“The Australia Institute report hones on the practice of debt-pushing – where bank workers have their performance linked to the number of credit products they sell to consumers,” Mr Masson said.

“It shows that without regulation banks will act in their self-interest rather than the interests of the broader economy.

“That’s why the FSU is calling on all candidates to commit to its Better Banking Charter which seeks regulation of:
- Off-shoring of bank jobs where sensitive personal data is handled
- use of debt sales targets as a performance measure
- interest rate movements outside Reserve Bank parameters
- control of short-term measures for bonuses for senior executives
- and tighter controls of bank fees

“The power of our banks touch the lives of every Australian – they deserve to know what candidates at this election are prepared to do to represent their interests,” said Mr Masson.

More information on the charter is available at www.better-banking.org

Spokesperson:  Rod Masson, 0408 374 677
Media:    Anaya Latter, 0432 121 636