The Prime Minister and the Treasurer have announced that Australia’s major banks will be called to appear at least annually before the House of Representatives Standing Committee on Economics to enable the Committee to report jointly to the Treasurer and the Parliament on Australia’s banking and financial system.

The Committee will be asked to call Australia’s banks separately to appear before the Committee to provide the opportunity for banks to explain how they are responding to funding issues to support Australian consumers and businesses.

In particular the banks will be required to explain:

• International economic and financial market developments 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 interest rate pricing decisions
• How individual banks and the banking industry as a whole is responding to issues previously raised in Parliamentary inquiries through their package of reforms announced in April 2016
• Bank perspectives on the performance of the Australian economy, including strengths and risks.

According to the Government, the appearance by the banks will ensure they have the important opportunity to transparently account for their decision making and how they balance the needs of borrowers, savers, shareholders and the wider community.

It is envisaged the Committee would report at least annually on its assessment of the evidence presented by the banks and other witnesses relevant to the subject of its inquiries.