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.
The FSU continues to campaign for the following regulatory changes to apply at home and abroad, for the benefits that it would deliver to our communities and also for the future economic security of our nations:
The Better Banking Charter outlines a series of reforms that would promote fiscal security and allow preventative measures against risky short-term behaviour, de-linking of sales targets with remuneration and direct links between fees and service provision:
• Commitment from Government and banks to stop offshoring jobs and invest in developing skills in the Australian financial sector (90% of the public support and 93% of workers support)
• Government regulation to prohibit or significantly limit the extent to which performance can be measured by sales volumes linked to selling debt products in the finance sector. (79% of public support and 90% of workers support)
• Government regulation to require banks to reflect interest rate movements set by the Reserve Bank (80% public support and 79% of workers support)
• Government regulation to prohibit the bonus culture that rewards risky short-term behaviour by executives in the finance sector (90% of public support and 89% of workers support)
• Regulatory requirement for banks to demonstrate a direct link between their fees and charges and customer service provision (82% support by public and workers)
This roadmap of changes have been endorsed and supported by Australians, but there is no reason why they couldn’t apply to banks around the world; to ensure that the pursuit of profit is not the only endgame, but that customers, workers, banks themselves and the community at large are all able to enjoy better banking,
Leon Carter, National Secretary, FSU
Do you like this article? Share It!
