Face of Nation : The regulator tasked with keeping banks in check is set to be grilled by federal politicians about its response to the damning financial services royal commission.
Australian Prudential Regulation Authority chairman Wayne Byres will front the parliament’s economics committee in Canberra on Friday, after Reserve Bank Governor Philip Lowe makes an appearance. Committee chair Tim Wilson says lawmakers want to question APRA on how it has been acting on the recommendations of the banking royal commission led by Kenneth Hayne.
Mr Byres’ appearance comes after he told a Sydney event that he would like to see stronger self-regulation of the financial sector. The APRA chief said some companies have shown reluctance to do the right thing if there is a financial consequence.
“We often hear executives complain they would like to curb a certain practice or stop selling a particular product but would suffer first-mover disadvantage,” Mr Byres said on Thursday. Dr Lowe will also appear before the committee, as part of regular hearings aimed at holding the central bank to account.
His appearance comes as economic data shows growth is stagnant. The latest export data shows Australia’s trade surplus has reached a record $8 billion, as exports grew one per cent, but imports fell four per cent due to weakening local demand. The Reserve Bank held the cash rate at a record low 1.0 per cent this week amid what Dr Lowe described as “increased” uncertainty for the global economy.
