• Contact
  • Feedback
Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now
  • News
  • Topics
    • All Topics
    • Briefs
    • Major Banks
    • Authorised deposit-taking institutions
    • Insurance, funds and super
    • Payments, mobile & wallets
    • Consumer lending
    • Mortgages
    • Business lending
    • Finance regulation
    • Debt capital markets
    • Ratings agencies
    • Equity capital markets
    • Professional services
    • Work & career
    • Foreign news
    • Other topics
  • Free Trial
  • Subscribe
  • Resources
    • Industry events
  • About us
    • About Banking Day
    • Advertise
    • Feedback
    • Contact Banking Day
  • Search
  • Login
  • My account
    • Account settings
    • User Admin
    • Logout

Login or request a free trial

More regular review of regulation needed

11 April 2014 4:02PM
The finance services industry needs a consultation body bringing together regulators, government and industry to regularly review the impact of regulation. This recommendation featured in several submissions to the Financial System Inquiry, including those from KPMG and academic Rod Maddock.KPMG said there was no effective mechanism for regular whole-of-sector consultation between regulators, government and industry.It said: "Consultation tends to be issue-specific. Given the inter-linkages between the different spheres of regulation and the increasing inter-connectedness of financial institutions, KPMG suggests that consideration be given to facilitating more whole-of-sector consultation."This could be achieved by holding annual or six-monthly consultation between the Council of Financial Regulators and the heads of industry peak bodies."We recommend that all regulations be subject to comprehensive, industry-wide review at regular intervals. This would allow for an assessment to be made of the cumulative impact of regulation across all agencies."KPMG also recommended "strengthening the requirements for costing regulatory proposals, with more rigour around the assessment of compliance costs and efficiency costs and considering a broad range of factors, including economic growth, productivity, innovation, trade and investment."Adjunct professor of economics at Monash University, Rod Maddock, recommended that prudential regulation be subject to competition review. Maddock said: "The fundamental proposition is that regulatory decisions are expensive. The cost of complying with new regulations will be very large. It adds to the cost structure of the economy and actually reduces its efficiency. APRA has decided this is worthwhile but it is arguable."Regulatory changes that are likely to cost more than $100 million should be subject to a cost-benefit analysis by an independent party."Maddock also said the financial system needed greater transparency. "Australia has capital rules that appear to be the same as those imposed in other countries but are actually much more stringent, such as the approach to measuring capital for common equity tier one purposes. "To ostensible comply with global rules but actually be stricter without telling anybody protects APRA but serves no public purpose."

I'm a returning subscriber

*
Password reset *
Login

Request a free trial

  • Emailing you the news at 7am.
  • Covering core lending and funding issues, strategy, payments, regulation, risk management, IT, marketing and more.
  • Original news and summaries of major stories from other media – ditch your newspaper subscriptions.
  • Focused on banking and finance, saving you the time spent wading through newspapers and other services.
  • With reporting from former editors and senior writers from the AFR and The Australian.
  • Configured for your phone, laptop and PC.
Free trial Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now

Consumer lending

  • Latitude, Harvey Norman liable for interest free GO card con

Copyright © WorkDay Media 2003-2025.

Banking Day is a WorkDay Media publication

WorkDay Media Unit Trust

  • Privacy policy
  • Terms of access and use