Banking reforms to be released this week

The Australian government is likely to release its reform proposals for the banking sector on Wednesday. The proposals are being considered by cabinet today. The reforms will cover five areas: an extended guarantees on wholesale deposits for smaller banks, building societies and credit unions, including spelling out terms for the retail deposit guarantee; support for easier switching of bank accounts; more power to the ACCC to patrol profit margins on bank products; a new law on “price signalling”, and requirements for lenders to provide clearer information to customers on the likely costs of credit. The final shape of the measures will be announced in the first half of next year.

Source: The Age