ECU supports calls for big bank age of entitlement to end

ECU has welcomed a call to end the age of entitlement for Australia’s four major banks including the billions of dollars in taxpayer subsidies they receive.

ECU’s CEO Colin Daly today backed the submission to the Financial System Inquiry by the Customer Owned Banking Association which highlighted the unfair advantages in the system that limits real competition for consumers.

“The Financial System Inquiry gives us a chance to build a better, fairer system for the future,” Colin said.

“The current financial system gives Australia’s big four banks billions of dollars in funding advantages for free.

“We support COBA in asking for a system that supports genuine competition and leads to a better banking deal for our local community.”

ECU is part of a diverse customer owned banking sector that delivers genuine competition and choice to more than four million Australians.

“We already challenge the major banks everyday in the communities we serve but need changes so a fairer financial system emerges,” Colin said. 

“Removing barriers and subsidies will create a more competitive system that will lead to a better banking deal for Australians and help smaller institutions like ours.”

The proposals for consideration announced by COBA include:

• A levy on the big four to pay for the taxpayer funded subsidy they receive;
• Better consumer information so Australians make informed banking choices;
• A banking regulator more focused on fostering competition;
• A tax cut on deposits to lift national savings;
• Equitable treatment and recognition of the customer owned banking model.

COBA has released detailed supporting analysis in its submission including material from the IMF, APRA and domestic and global research to support the case for change.

To read COBA’s submission visit www.balancebanking.com.au