Peter White from the Finance Brokers Association of Australia (FBAA) has revealed he met last week with Federal Treasurer Scott Morrison and a small group of business leaders.
They discussed the need for LMI disclosure to be included in the key fact sheet on all mortgage documents as has been previously agreed but as yet not adopted. Mr White explained he is concerned that the increased media interest in the subject might “play out negatively for the Government if this is delayed”.
However, Mr White said the main subject of the conversation was around banking transparency.
“I asked that given truth comes through transparency, how can we ensure greater transparency from banks to ensure borrowers are more educated, in order for them to make more informed decisions?
“Treasury is talking about better outcomes for credit card holders, and the current review is forcing the banks to acknowledge their failings, yet they are still not being open about issues like interest rate margins, credit card rates, and the bank bill swap rate.”
Mr White said Mr Morrison stated the need for a strong banking environment and profitable banking, and said the Government would not be telling the banks how to run their operations.
However, the treasurer also committed to holding the banks accountable for their actions and forcing them to explain their decisions and provide more details.
“The FBAA would like to see more accountability. We accept that something is being done and will continue our dialogue with key people within government.”