Assessment of the Australian Government’s Four Pillars Policy in the Banking Industry

Assessment of the Australian Government’s Four Pillars Policy in the
Banking Industry

ABSTRACT
The power of the big banks in Australia is unambiguous, the underlying
revenue are equated to almost 3% of the GDP of the country, this is as a
result of the high concentration of the big players in the industry.
Traditionally the commercial financial institution have to serve the social
interest as well as the economic function that is provision of adequate
services to the community and ensure that they supply and advance credit
facilities. Presently the modern system of banking has focused more on the
maximizing of the share of the market and this means that sometimes it acts
against the interest of the consumers and the large community. Further this
has prompted a reaction from the government for greater regulation in the
sector. The government ensures that the consumers are well served with
adequate financial information, also ensuring that the banks operate within
the interest of the public at large.
Furthermore, the government should ensure that the environment where the
customers operate in and make financial choices is well organized and
equitably, in a way that is destined to authorize the individuals rather than
the big banks. The makers of the policies in Australian regulatory
environment have a huge task to battle against the strength of the big banks
in Australia, and the major huddle is the competitive edge that they possess.
The common wealth bank was established to deliver unaffected rivalry
counter to the large private banks.
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Contents
Contents..........................................................................................................3
Introduction.....................................................................................................4
History for Competition in Banks.....................................................................4
The four Pillar Policy........................................................................................5
Implications on implementing the Four Pillar Policy........................................5
Outcomes of the 2018 The Royal Commission into Misconduct in the Banking
.........................................................................................................................6
Superannuation and Financial Services Industry, what direction do you
recommend the Government take with the Four Pillars Policy – maintain,
amend or abandon it?......................................................................................7
Conclusion.......................................................................................................7
References.......................................................................................................9
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