Australia's so called big four banks have banded together to respond to the news the government will establish a royal commission into misconduct into the country's banking and financial services sector.
The enquiry comes following a series of high profile misdemeanours. ANZ, Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), and Westpac have been under growing political pressure.
In the most recent banking related misconduct incident ANZ revealed it had sacked bankers over drug use and a sexual harassment case. That news was the latest in a stream of issues the big four banks have been entangled in.
Money Laundering Case
Earlier this month ANZ and NAB agreed to pay a collective 100 million dollar penalty for their involvement in the rigging of overnight bank bill swap rates. Westpac is also fighting its own corner in the rate case.
Commonwealth Bank of Australia (CBA) has in recent years been embroiled in scandals regarding substandard financial advice, wrongly denying some life insurance claims on the basis of outdated medical definitions, and most recently allegations of a mass breach of anti-money laundering laws.
Digital Disruption and Slowing Economy
The CEOs and chairmen of the banking groups have accepted the royal commission will go ahead and have requested a properly constituted inquiry into the sector in an email sent to Australian Treasurer Scott Morrison.
The letter said the banks believed a royal commission would be a «costly and unnecessary distractions at a time when the finance sector faces significant challenges and disruption from technology and growing global macroeconomic uncertainty.»
The email was signed by ANZ chairman David Gonski and chief executive Shayne Elliott, CBA chairman Catherine Livingstone and CEO Ian Narev, NAB chairman Ken Henry and CEO Andrew Thorburn, and Westpac chairman Lindsay Maxsted and CEO Brian Hartzer.
