Establishing a Royal Commission into financial services when there is already robust regulatory oversight in place risks undermining confidence at a critical time in the economic cycle, and could have a serious impact on investment and growth, said BCA Chief Executive Jennifer Westacott.

“Australia's banking regulation system is world-leading and the sector has been subjected to a number of reviews, most recently the Financial System Inquiry whose recommendations are yet to take full effect,” said Ms Westacott.

“While the culture in some parts of the industry needs to be improved, we should be extraordinarily cautious about overstating the nature or extent of poor conduct in a way that implies systemic failure across the sector.

“We have some of the strongest banks in the world, an asset which cushioned Australia from the worst effects of the GFC.

“Rather than the unwarranted distraction of a Royal Commission, Australia’s highly empowered banking regulators should be left to get on with their job.”

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