Grant Thornton, one of the world's leading organisations of independent assurance, tax and advisory firms, released a report titled: rising fear over disproportionate cost of banking regulation for smaller lenders and the ultimate cost to competition and consumers.
As this is a topic very relevant to us here at LCU we encourage everyone to read the report. We have highlighted a few key points:
Grant Thornton’s findings and recommendations are based on a survey of Customer Owned Banking Association (COBA) members which collectively hold the largest deposit pool and home-lending book outside the Big Four banks. The independent audit and financial advisory firm interviewed top executives from 26 banks and mutuals with asset sizes ranging from more than $5 billion to less than $1 billion.
The report said smaller banks could be ‘squeezed out’, with profound implications for Australian consumers, if decision-makers forget that it was the Big Four who were ultimately responsible for the bad behaviour which led to the Hayne Royal Commission.
Grant Thornton has also created an infographic to help explain the varying cost of compliance across different financial organisations.
Are you tired of hearing bad news and feeling helpless? Well in this case there is something you can do. Contact your local member of parliament or even the current finance minister at the time of reading. Find their contact details by heading to the Australian Parliament website here.
