The Treasurer has announced the terms of reference for a review by the Council of Financial Regulators (CFR) and the ACCC of the role small and medium-sized banks.
The review is in response to the ACCC’s Inquiries into retail deposit products and home loan pricing.
The review will focus on the role small and medium sized banks play in providing competition in the sector and the regulatory and market trends affecting them.
It will also identify current and potential sources of and barriers to competition from these sectors.
It will propose ways to improve regulation and ensure that oversight of these banks appropriately balances competition, innovation, and stability.
The review will also assess how small and medium-sized banks source funding, including the role of covered bonds.
The CFR will provide a final report to the government by 1 July 2025.
The review will not review matters:
- subject to any current government legislative workstreams (for example, the regulatory initiatives grid, the consumer data right, facilitating mortgage switching, payments regulation); or
- outside of the areas of responsibility of CFR agencies (for example, anti-money laundering/counter terrorism funding requirements); or
- relating to agency funding or industry levies.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
