The consensus that is emerging from global leaders discussions at the G20 in Toronto on the subject of fiscal responsibility is a good step towards firmer safeguards, but must be stronger and have substance in order to work.

The sweeping commitments aired by leaders today aren’t enough when it comes to protecting against the chance of a repeat of the global financial crisis.

Australians and International citizens around the world deserve better assurance that their banking sector will no longer engage in the risky practices that brought about the financial instability we have seen in the US and more vividly, Greece.

The FSU has been tabling and surveying potential reforms with the community and our findings show that there is strong support for both global rules that limit risky banking and lending practices, and a series of reforms that would see better service delivered to customers. Read more »

In a recent survey conducted by the Finance Sector Union about banking practices there was one very clear message that came back from both bank workers and customers: Australian banking isn’t good enough.

Customers are tired of excessive fees, charges, declining customer service and constantly being sold more debt. Workers are tired of being pressured to sell more debt, being unable to deliver the kind of service they would like to, and watching their bosses get paid big bonuses for risky banking behaviour.

We need to address this problem. We need to improve regulation of Australian banking.

International leaders at the G20 are debating improving regulation of the banking sector to avoid another Global Financial Crisis. However, international talks can drag on, and just like Copenhagen there is no guarantee they will even come to an agreement. In the mean time customers and workers are bearing the brunt of bad banking practices. Read more »

Today’s Sydney Morning Herald reveals that banks, using the Global Financial Crisis as an excuse, have increased the costs to consumers above their increase in costs, resulting in the windfall evident in the recent bumper round of profit announcements.

The Herald’s analysis was based on the Reserve Bank’s most recent quarterly bulletin which showed how the big four banks had faced a 1.3 to 1.4 per cent increase in their funding costs, but increases in costs faced by banks was more than offset by interest rate increases for their customers.
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