Malcolm Turnbull announces banking royal commission after big four call for inquiry to restore public faith
Malcolm Turnbull has announced a royal commission into the banking sector, after Australia's big four banks wrote to the Treasurer asking for an inquiry to restore public faith in the financial system.
A letter signed by the chairpersons and chief executives of ANZ, Commonwealth, NAB and Westpac argued that even though the sector had long campaigned against it, such a measure was now in the national interest.
"Our banks have consistently argued the view that further inquiries into the sector, including a royal commission, are unwarranted," the letter said.
"However, it is now in the national interest for the political uncertainty to end."
Shortly after the letter was released, the Prime Minister announced the royal commission, saying that it was the only way to "give all Australians a greater degree of assurance" about the banking sector.
"Since the financial crisis, there have been examples of misconduct by financial institutions. Some of them extremely serious. And that's demanded a response from the institutions themselves and from government," Mr Turnbull said.
"The only way we can give all Australians a greater degree of assurance is a royal commission into misconduct into the financial services industry.
"It will cover the nation's banks, big and small, wealth managers, superannuation providers, insurance companies. It will be a comprehensive inquiry."
The Government will ask the royal commissioner to deliver a final report by February 1, 2019.
Read the letter sent to the treasurer letter
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