A banking royal commission has the potential to improve Australians’ confidence in the finance sector, the head of Bendigo and Adelaide Bank has said.
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The finstitution’s managing director, Mike Hirst, said today he was pleased questions about poor conduct could be addressed, with public discussion about banking culture “[putting] a deep dent” in the reputation of his industry.
“The Royal Commission is an opportunity to put an end to the constant undermining of an industry, which is essential to the effective functioning of society as a whole,” Mr Hirst said.
As recently as last month, at the bank’s annual general meeting, Mr Hirst rejected the notion of a banking royal commission, calling the idea a “"waste of taxpayers' money" designed to “whip up” anger.
He also said Bendigo and Adelaide Bank had practiced good governance for years and cited its community contributions scheme as evidence it cared about customers.
"We act in these ways because it’s the right thing to do,” Mr Hirst said.
"As a bank, we understand that we play an important role in the community, and it's critical that the community trusts us.
“A robust banking system is vital to the strength of our country today, and for the future.”
Prime Minister Malcolm Turnbull today announced his government would establish a royal commission into Australia's banking sector.
The backflip followed followed an email from bank CEOs to treasurer Scott Morrison asking for an inquiry to take place. Mr Turnbull also faced mount pressure from Labor and some Nationals MPs in favour of an investigation.
He said he acquiesed to the request in order to end speculation about the robustness of the industry.
"It's moving into dangerous territory where some of the proposals being put forward have the potential, seriously, to damage some of our most important institutions," he told Fairfax Media.
The royal commission will run for 12 months.
Mark Kearney
Journalist. Traveller. Pop culture connoisseur. Mark is passionate about education, the arts and social justice, especially stories affecting the LGBTI community.
Journalist. Traveller. Pop culture connoisseur. Mark is passionate about education, the arts and social justice, especially stories affecting the LGBTI community.
