Treasurer Jim Chalmers urges transparency as big bank bosses front parliamentary inquiry

Major banks have a responsibility to treat their customers fairly, the treasurer has declared, as the bosses of some of the largest financial institutions prepare for a parliamentary grilling.
Commonwealth Bank chief executive Matt Comyn and Westpac head Peter King will appear to give evidence before a House of Representatives committee reviewing Australia’s big four banks on Thursday.
The big four control about 80 per cent of the Australian banking sector.
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“There’s never been a more important time for banks to treat their customers fairly, and we believe that more transparency is better,” he told ABC Radio on Thursday.
“That’s why the banks have this opportunity ... to set out how they are helping people who might be doing it tough after these recent interest rate rises from last year and before.”
The official cash rate has been kept at 4.35 per cent by the Reserve Bank since November.
The Reserve Bank governor Michele Bullock said earlier in August that an interest rate cut would be unlikely by the end of 2024.
The inquiry’s chair, Labor MP Daniel Mulino, said interest rate decisions by the banks would be a key focus of the committee.
“The Reserve Bank governor told us it is premature for commentators to be thinking about rate cuts yet the major banks all predict an easing cycle in the near to medium term. We want to understanding the reasoning,” he said.
Dr Chalmers said it was not surprising major banks had differed in their assessment of the economy compared to the Reserve Bank.
“It’s not unusual for economists to disagree about the future trajectory of the economy,” he said.
“It wasn’t that long ago that some economists were saying there’d be two or three rate hikes this year. There hasn’t been a rate hike since November last year.”
Dr Mulino said how the major banks dealt with scams would also be addressed by the parliamentary inquiry.
“Australians lost $2.7 billion to scams last year, with a marked increase in scams from social media,” he said.
“The banks are obviously not the only powerful corporations in this space, but they are incredibly important and many people are rightly calling on them to do more to protect vulnerable customers.”
Thursday will be the first of two days of hearings into the big four banks, with NAB and ANZ executives to appear on Friday.