Joint Letter to Treasurer

30 November 2017

The Hon. Scott Morrison, MP
Treasurer
Parliament House
CANBERRA ACT 2600

Via Email


Dear Treasurer

We are writing to you as the leaders of Australia’s major banks. In light of the latest wave of
speculation about a parliamentary commission of inquiry into the banking and finance sector,
we believe it is now imperative for the Australian Government to act decisively to deliver
certainty to Australia’s financial services sector, our customers and the community.

Our banks have consistently argued the view that further inquiries into the sector, including a
Royal Commission, are unwarranted. They are costly and unnecessary distractions at a time
when the finance sector faces significant challenges and disruption from technology and
growing global macroeconomic uncertainty.

However, it is now in the national interest for the political uncertainty to end. It is hurting
confidence in our financial services system, including in offshore markets, and has
diminished trust and respect for our sector and people. It also risks undermining the critical
perception that our banks are unquestionably strong.

As you know our banks have acknowledged that we have not always got it right, and have
made mistakes. Together with the Government and regulators, since 2014 we have been
taking action to fix issues, and improve what we do and how we do it. We have collectively
appeared before, or taken part in 51 substantial reviews, investigations and inquiries since
the global financial crisis, 12 of which are ongoing. We continue to demonstrate our
commitment to doing the right thing by our customers and seeking to ensure those genuinely
affected by these mistakes are appropriately compensated.

A strong, well-regulated and well-governed banking system is in the interests of all
Australians and is critical to job creation and fairness. The strong credentials of the banking
system ensured Australians were spared the worst of the Global Financial Crisis, and have
been fundamental to the ongoing performance of our economy despite global and domestic
political turmoil.

We now ask you and your government to act to ensure a properly constituted inquiry into the
financial services sector is established to put an end to the uncertainty and restore trust,
respect and confidence.
In our view, a properly constituted inquiry must have several significant characteristics. It
should be led by an eminent and respected ex judicial officer. Its terms of reference should
be thoughtfully drafted and free of political influence. Its scope should be sufficient to cover
the community’s core concerns which include banking, insurance, superannuation and non-
ADI finance providers. Further to avoid confusion and inconsistency, the inquiry must to the
most practical extent replace other ongoing inquiries.

It is vital that the terms of any inquiry consider the many reviews and inquiries that have
been conducted into the banking sector in recent years; the significant government and
industry-led reforms that have been and will shortly be implemented; the 44
recommendations made in the Financial System Inquiry in 2014; and the broad and positive
contribution that banks make to the Australian economy and to millions of customers and
shareholders.

It is also important that any inquiry reports back in a timely manner so that we can have
certainty about the findings and move forward to implement any recommendations.

We will work hard to ensure our contribution to any process helps to further strengthen
Australia’s financial services system.

Throughout this, our focus will remain on our customers. We are proud of the work our
people do every day to support them. That work continues.


Yours faithfully,




David Gonski, AC Shayne Elliott
ANZ Chairman ANZ Chief Executive Officer



Catherine Livingstone, AO Ian Narev
CBA Chairman CBA Chief Executive Officer




Ken Henry, AC Andrew Thorburn
NAB Chairman NAB Chief Executive Officer



Lindsay Maxsted Brian Hartzer
Westpac Chairman Westpac Chief Executive Officer