Login
Emma Musgrave
The Australian Lawyers Alliance has renewed its call for a royal commission into Australia’s banking system, saying the current parliamentary inquiry has failed to properly examine the systemic issues plaguing the “troubled” industry.
The Australian Lawyers Alliance has renewed its call for a royal commission into Australia’s banking system, saying the current parliamentary inquiry has failed to properly examine the systemic issues plaguing the “troubled” industry.
ALA spokesperson Josh Mennen said “nothing of significance” is emerging from the current inquiry.
“The parliamentary forum format enables the banks to avoid questions by citing ‘competitive sensitivities’. There is simply not enough time for issues to be dealt with in more than a superficial glossing over.
“What we are seeing is essentially a PR exercise by the banks, which these bank executives, paid millions of dollars each year, are very good at. Their platitudes, spin and denials shield the public from exploring the real issues that have left so many victims in financial ruin.”
Mr Mennan noted that banking practices exposed in recent media reports were a clear sign of deep problems across the sector.
“The banks’ focus is no longer on [their] customers,” Mr Mennen said.
“Attention now seems severely skewed toward revenue and sales rather than customers – this is a deep cultural problem, so the ‘few bad apples’ excuse doesn’t wash.
“It’s not at all surprising that insurance claims staff have avoided meaningful discipline for mistreating deserving claimants, because claims assessors are encouraged to deny claims to meet their work targets.”
Mr Mennen proposed to expose the cultural issues in the banking sector by setting up a royal commission. He said this would be a more effective way to look into the issues than setting up a new banking tribunal, as the government has previously proposed.
“Only a royal commission can give the necessary level of scrutiny needed to explore and address the systemic problems, by compelling document production and oral evidence under oath,” Mr Mennen said.
“A new tribunal would look at individual complaints and be remedial in nature. Whilst it is essential that consumers who have been wronged are fully compensated, we also need to address the causes, which are deeply rooted in industry culture.
“To do that, we need a royal commission conducted with openness and transparency.”
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
Email Emma on:
