The Terms of Reference of the Review of Australia’s Four Major Banks by the House of Representatives Standing Committee on Economics has been released.

The Treasurer has asked the committee to hold public hearings at least annually with the four major banks focusing on:

• domestic and international financial market developments as they relate to the Australian banking sector and how these are affecting Australia
• developments in prudential regulation, including capital requirements, and how these are affecting the policies of Australian banks
• the costs of funds, impacts on margins and the basis for bank pricing decisions, and
• how individual banks and the banking industry as a whole are responding to issues previously raised in Parliamentary and other inquiries, including through the Australian Bankers’ Association’s April 2016 six point plan to enhance consumer protections and in response to Government reforms and actions by regulators.

The chief executives of the banks are expected to appear ­before the Committee in early October.