Bank interim CEO takes conversation to Canberra

by Rebecca Pike19 Feb 2019

Banks are writing to brokers to affirm their support of the industry, with one in particular informing them its CEO was travelling to Canberra to meet with the treasurer.

In a note to brokers, Bank of Queensland’s group executive, retail banking, Lyn McGrath, said the bank believed in the “value of a strong, vibrant and sustainable mortgage broking industry”.

She added, “We recognise that mortgage brokers support competition and choice by helping smaller banks compete against their larger rivals.

“In our view, any reform to the mortgage broking industry must be managed in a way that does not undermine the viability of the sector and its positive impacts on competition and customer outcomes.

“We remain committed to supporting the mortgage broking industry.”

The note said that interim CEO Anthony Rose was travelling to Canberra to meet with “key political stakeholders” including the treasurer and shadow treasurer.

“The Royal Commission’s recommendations, and the risks to the industry of poorly considered reforms, will be one of the key topics of conversation,” she added.

Last week Western Australian bank P&N bank also wrote to mortgage brokers and backed the Customer Owned Banking Association (COBA) and MFAA in urging caution.

CEO Andrew Hadley said it was pleasing to see that many stakeholders, including the government, had stressed the need to be cautious so that unintended consequences do not result in customers being adversely impacted.

He added, “We too support the position that caution needs to be applied to ensure that this particular recommendation does not play into the hands of the major banks which in turn will erode genuine competition for consumers.

"As such, P&N will continue to work with the industry to advocate for a solution that suits all parties and works best for all Australians.”