Stockbroking | Wealth Management | Corporate Advice


Resizing text on the web

To increase or decrease the magnification of a web page, press Ctrl and '+' (plus) to zoom in or Ctrl and '-' (minus) to zoom out. To return the page to its original size, press Ctrl + 0.

You can also scroll the mouse wheel up and down while holding Ctrl to increase/decrease zoom level.

Day of shame for Australian banks: Bligh

It's a day of shame for Australia's banks, banking association chief Anna Bligh says.

There was nothing for banks to be proud of in the banking royal commission interim report from Kenneth Hayne QC, Ms Bligh told reporters in Sydney on Friday.

"Our banks have failed in many ways. Failed customers, failed to obey the law and failed to meet community standards."

"And all of these failures are totally unacceptable. Too many customers have been hurt and it has to stop."

The sector had lost the trust of the community, she says, and had to do "whatever it takes" to regain that trust, including a move from a selling culture to a service culture.

Ms Bligh agreed with the commissioner that greed played a part in the misconduct which had occurred in the financial services industry, adding it had no place in the Australian banking system.

Banks took full responsibility for their failures and would "repay every penny".

Ms Bligh pointed to the commissioner's comment that some of the regulation needed simplifying but says it is premature to speculate what regulation would result from the report.

The commission will be informed when regulation would lead to costs being passed on to the consumer, she said.

Shares in the financial stocks on the Australian share market, which is dominated by the big four banks, jumped 1.6 per cent within minutes of the interim release and kept rising.

Even Westpac, which had been in the red all day after announcing it was setting aside $235 million to compensate customers overcharged for financial services, had its best day since August 29.

Boosted by gains in banks, the benchmark S&P/ASX 200 index rose 0.4 per cent or 26.4 points to 6,207.6 at the close of trade.

Austrlaian Associated PressBack to Breaking News

Market Indices