Bank bosses comments an attempt to deflect focus from their greed and bad practices

Media Release
Bank bosses comments an attempt to deflect focus from their greed and bad practices

The big banks have learnt nothing from the Hayne royal commission and hate competition, according to the head of the Finance Brokers Association of Australia (FBAA).

Peter White AM hit out at comments targeting broker remuneration made by the heads of the Commonwealth Bank, NAB and Westpac to Federal Parliament’s Standing Committee on Economics as they defended their move to ignore the royal commission’s recommendations and lift bonuses and commissions for their lending staff.

He said dragging brokers into the conversation was a “smokescreen to deflect from their own bad practices.”

“Both the Government and Opposition understand that broker remuneration is fair for brokers and consumers, and after endless reviews over many years the matter is settled.

“Everyone has moved on except the bank bosses who cannot stand that fact that brokers bring competition to the market,” Mr White said.

Calling the comments laughable, he said “they don’t even hide their greed anymore.”

“The big banks want a monopoly and clearly the billions of dollars of profits they make every year isn’t enough.

“At the core of this matter is the desire by the banks to incentivise the risk of bad behaviour.

“These incentives can and do result in bank staff encouraging borrowers to refinance even if it’s not in their best interests.

Mr White explained that while mortgage brokers are legally obliged to act in the best interests of their customers, “banks are not, and they cannot because they are selling a product.”

He also pointed out that the royal commission was never about mortgage brokers who didn’t have the opportunity to defend their position.

“This was a royal commission into poor bank superannuation and financial services conduct, and how quickly the big banks have forgotten the stories of the countless people whose lives were ruined due to their conduct.”

It was irrelevant comparing brokers, who as small business people have no regular pay or safety net, to bank staff, he explained.

“A mortgage broker may earn nothing one month and the next month may make money only to have the risk of a clawback.

“If the banks care about their lending staff so much they should increase the base salaries,” he said.