The federal government has announced a royal commission into the banks and the financial sector, reversing its previous opposition to such a move.
The announcement came at a press conference at 9.00am this morning, following a Cabinet meeting. The decision was preceded by a request from the major banks for a royal commission. In a letter to the government, the chairmen and chief executives of CBA, NAB, ANZ and Westpac said:
“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 Australian’s financial services sector, our customers and the community.”
Recent days have seen increasing calls for a royal commission, especially from elements in the National Party. The House of Representatives resumes sitting next week. With two members down and facing by-elections, the government risked embarrassment in the chamber.
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The Letter from the Banks
