Home Stock & SharesBanks Malcolm Turnbull of Australia all but confirms bank tribunal

Malcolm Turnbull of Australia all but confirms bank tribunal

by Jonathan Adams

The Commonwealth Bank of Australia has warned its credit rating and that of other retail banks could be further imperilled unless the “bank bashing” in Canberra eased off.

The bank expressed its fear as Prime Minister Malcolm Turnbull all but gave the green light to the establishment of a victims’ tribunal in yet another concession to ward off calls by Labor and others for a royal commission.

A day after Treasurer Scott Morrison left open the door to establishing such a tribunal, Mr Turnbull said despite the existence of the banking Ombudsman, or Financial Ombudsman Service, the government was “looking at” the tribunal idea.

“We want to ensure that where there are failings, where there are problems that we deal with them,’ he said.

“That’s why we gave ASIC $127 million (£96.63 million), because they can get on and take the investigations and prosecutions now.

“In terms of improving the way customers and particularly retail customers are dealt with, we’re very open to looking at action in that regard and that is the difference between taking real action now, on the other hand proposing a royal commission which would go on for years and years, cost hundreds of millions of dollars and then write a report, and help nobody, except the legal professions no doubt.”

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