Submissions open for banking inquiry

The terms of reference announced last week include looking at the price of banking services, with a particular focus on business and rural lending products and the return on capital from business, rural and residential mortgage lending.

Federated Farmers banking spokesperson Richard McIntyre says the broad scope of the inquiry will hit the mark for farmers and rural communities.

“We’re pleased to see the Government announce a wide-ranging inquiry that will leave the banks with nowhere to hide,” McIntyre says.

“Farmers have been asking serious questions about the levels of competition, profitability and transparency in rural lending for a long time now – and it looks like they’re about to get answers.

“This inquiry is well placed to shine a bright light on parts of our rural banking system that, until now, have been allowed to operate in the shadows.”

The chair of primary production select committee, Mark Cameron, is urging the rural sector to make their voices heard.

“Anyone on the back of a rural loan, whether you are a horticulture, sheep and beef, arable or dairy farmer, should make sure their voices are heard – be part of the process,” he told Dairy News.

The public submission period runs for six weeks.