Competitive and Sustainable Banking System Report

Date
ISBN
978-0-642-74660
Author
Australian Government

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The Gillard Government will take further action in three broad streams of reform to empower consumers to get a better deal in the banking system, to support our smaller lenders so they can put more competitive pressure on the big banks, and to secure the long-term safety and sustainability of the financial system so it can continue to provide reasonably priced credit to Australian households and small businesses.

Broad reforms to build on the strength of our financial system

Stream One: Empower consumers to get a better deal

Stream Two: Support smaller lenders to compete with the big banks

Stream Three: Secure the long-term safety and sustainability of our financial system

  • Allow Australian banks, credit unions and building societies to issue covered bonds – diversify and strengthen funding for our financial system to secure its safety and sustainability in the decades to come, and harness our national superannuation savings to domestically fund more productive investment in our economy.
  • Develop a deep and liquid corporate bond market – launch trading of Commonwealth Government Securities on a securities exchange, with Treasury to also finalise reforms to further reduce red tape associated with issuing corporate bonds to retail investors, to reduce our reliance on offshore wholesale funding by engaging our national savings.