Auswide Bank boss welcomes commission
AUSWIDE Bank chief executive Martin Barrett has welcomed the banking royal commission, saying the constant speculation over the entire banking sector was bad for the economy and lowering customer confidence.
After spending almost 18 months opposing the inquiry, Prime Minister Malcolm Turnbull last week caved to pressure from within his own party.
But Mr Barrett believes it was the right move to help quell the unrest and uncertainty.
"The banking system is critical to the economy and the ongoing discussions and concerns paint the industry in a poor light," he said.
"I think it got to a point where the only sensible thing for the government to do was to take control so it can set the terms of reference."
The terms of reference for the inquiry are yet to be finalised but it will reportedly include investigation into superannuation and other financial organisations, not just the banks.
Former High Court judge Kenneth Hayne has been appointed to head the royal commission.
The commission will cost $75million and last 12 months, which some pundits have argued is an inadequate time frame for the investigation.
Mr Barrett disagreed.
"I think keeping it to a short time frame of 12 months should keep the focus tight and activity moving and keep the cost down," he said.