FBAA calls for independent actuary into big four banks

The head of this major industry association has proposed a new body to keep the majors transparent and accountable

FBAA calls for independent actuary into big four banks



The head of the Finance Brokers Association of Australia (FBAA) has proposed the creation of an independent actuary to assess data and statistics from the major banks.

The body would examine numbers used by the big four banks in the media and ensure that all figures are accurate and representative of the truth.

“Distinguishing fact from fiction is the major challenge,” said FBAA executive director Peter White. “Are we getting facts from the banks?”

The actuary would look into the impact of these quoted figures on shareholders, interest rates and additional fees and charges, and could provide clarification over knock down effects from measures such as the government’s bank levy.

White expressed concern that market chatter around the bank levy was muddying the waters.

“There are many varying opinions, yet the banks fail to remember the government has backed the majors allowing a cheaper cost of funds by 0.17% over what non-majors get,” he said.

Everyone, including individuals and businesses, has to pay taxes which are sometimes increased whether we like them or not, White said.

“For example, the Medicare levy will rise in order to pay for the NDIS. So why are the banks, who continually boast about how much money they make, complaining about having to pay their taxes?”

There is a real need to ensure the big four banks are fully transparent and accountable, White concluded.

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