A Royal Commission into banks? Bring it on.

The Age reports that: ‘It would cost them seats’: Banks refuse to rule out mining tax-style campaign against royal commission.

One of the things that any bank insider will tell you is that “our customers hate us.” There are almost as many reasons as there are customers, as we all feel that our bank has given us a bad deal at some time.  Like charging you two dollars to withdraw $20 from an ATM, the equivalent of a 10% fee for one transaction while the banks are paying 2 to 3% per annum on deposits.

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ATMs: The Ned Kelly’s of the banking industry hunt in packs

So it’s unlikely that the proposal to hold a Royal Commission into the banking sector will cost the Labor Party seats. Probably exactly the opposite.

And in defence of the banks you have: Former Reserve Bank board member Warwick McKibbin accusing Labor of playing a “dangerous game” with a fundamental pillar of the Australian economy. ” When the global financial system is under pressure, you don’t want to be having a review based purely on politics. Banks are a key pillar of the economy and this is a dangerous game to play,” he said

A couple of points Warwick.

  1. Most people would not see the review being based purely on politics. Although, you could forgive Bill Shorten for wanting to even the score on “politically motivated” Royal Commissions.  Some pretty devious doings have been uncovered in the banking industry and it’s probably time for a reckoning.
  2.  The fact that the industry is under pressure is not an argument against having an enquiry into the nefarious dealings of  “a key pillar of the economy”.  It’s very important that the confidence of banking customers and the integrity of the banking system be maintained.

But arguing that a Royal Commission will destroy that confidence is like an admission that there is something to hide and that its discovery will be detrimental to the banks.

 

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