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Category: Banking / Federal Parliament / Federal Government / Turnbull, Malcolm / Business, Economics and Finance

Turnbull rebukes banks for customer mistreatment

Wednesday, 6 Apr 2016 13:11:30 | Anna Henderson

Malcolm Turnbull says his criticism wasn't 'bank-bashing'. (ABC News: Matt Roberts)

Malcolm Turnbull has publicly reprimanded the banking sector over customer mistreatment, but has not addressed specific allegations of rigging at one of the nation's most powerful banking institutions.

Mr Turnbull tackled the broader issue of banking behaviour in an address to Westpac's 199th birthday lunch in Sydney, but he stressed he was not aiming his remarks at a specific institution or over an individual case.

He said many Australians questioned whether the banks had done enough to repay Australian customers after getting significant taxpayer support during the global financial crisis.

"The truth is that despite the public support offered at their time of need our bankers have not always treated their customers as they should," Mr Turnbull said.

"Some, regrettably, as we know have taken advantage of fellow Australians and the savings they've spent a lifetime accumulating seeking only dignity and independence in their retirement."

Mr Turnbull said "wise bankers" would not dismiss his criticism as bank-bashing.

Public expects bankers 'to have higher standards': Turnbull

The Australian Securities and Investments Commission (ASIC) is investigating allegations of a multi-billion-dollar rigging of interest rate trading at Westpac and ANZ.

"I make no comments about any specific cases or any specific institutions, including where claims of wrongdoing have been disputed, but we have to acknowledge that there have been too many troubling incidents over recent times for them simply to be dismissed," he said.

"We expect our bankers to have higher standards, we expect them always rigorously to put their customers' interests first, to deal with their depositors and their borrowers, to those they advise and those with whom they transact in precisely the same way they would have them deal with themselves.

"The singular pursuit of an extra dollar of profit at the expense of those values is not simply wrong, but it places at risk the whole social licence, the good name and reputation upon which great institutions depend."

Following his address Mr Turnbull was asked directly about whether he would support a royal commission into the banking sector, something his own backbench colleague Senator John Williams has been pushing for.

"I don't want to add to the point, the very frank remarks, I made in my speech," he said.

"There are big cultural issues and this is a time for the leaders of banks to step up and show real leadership."

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