Australia’s big four banks have asked the Government for a Royal Commission into themselves. And the Turnbull Government has agreed.
Federal Cabinet met this morning and agreed to establish a Royal Commission that will report by February 1 2019, at a cost of 75 million dollars.
In a letter written to the government, the CEO’s of the four major banks say this is now in the ‘national interest’, despite warning that such a commission may being reputational damage to the industry.
This comes after years of the Government rejecting such a proposal (including during the election).
The Commission will be into ‘Misconduct into the Financial Services Industry’ and will include cases studies into banks, wealth managers, superanuation companies and the industry. It will then offer recommendations to the Government.
The Royal Commission comes a week before the House of Representatives was due to sit with the Government two votes behind on the floor due to by-elections, and several backbench National MP’s indicating they would cross the floor to establish an inquiry.