Labor understands that Australians want more competition in the banking sector, and we know that stronger credit unions and building societies will open up more choice for customers.
That’s why we welcome KPMG’s annual review of Australia’s credit unions, building societies and mutual banks (“mutuals”) released today.
The review demonstrates the mutuals industry is flourishing in an environment of low economic growth with an asset growth of 7.8 per cent, compared to 5.1 per cent for the wider banking industry.
The review also called on the Turnbull Government to respond, as a priority, to the Senate Economics References Committee’s March 2016 report into the industry.
KPMG supported all of the Committee’s recommendations, particularly those aimed at making it easier for mutuals to raise capital, as well as identifying a “number of quick wins that could be achieved by amending various regulations.”
While the Turnbull Government has sat on its hands, last week Labor announced a raft of key reforms that we are committed to implementing. These reforms will facilitate fairer access to capital for credit unions and building societies to compete effectively with large banks, clearly define mutual enterprises and director’s duties in the Corporations Act, and remove unnecessary regulations and thresholds.
On this issue, as on so many other others, it is time for the Turnbull Government to follow Labor’s lead.
THURSDAY, 17 NOVEMBER 2016
MEDIA CONTACT: TAIMUS WERNER-GIBBINGS 0437 320 393