Another layer of regulation on the financial sector will detract from Australia’s global competitiveness, says a federal government MP.
Nicolle Flint fears the Banking Executive Accountability Regime (BEAR), a scheme aimed at making banks more accountable, goes against world’s best practice.
She says the financial sector has faced 24 reviews, reports and inquiries and is subject to almost 40 regulators at any one time.
Additionally there have been 16 recent changes to banking and regulation legislation.
“The banking executive accountability regime adds yet another layer of regulation to the ever-growing compliance faced by our financial institutions, adding another detractor to our competitiveness relative to those international sectors,” she said.
“It does this having only been subjected to a three-week consultation paper on the idea of the regime followed by a one-week consultation period on the draft legislation itself.”
Ms Flint also spoke out against the banking royal commission, saying while “bank bashing mentality” might be politically beneficial in the short term it would hurt Australian businesses, shareholders, employees and customers in the long-term.
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