David Murray did a terrific job of his banking inquiry and he may have a point today:
Australia has moved from a banking royal commission proposal that was not needed on either stability or economic hardship grounds, to one which is needed to rebuild trust and confidence to protect the stability we already have.
When the government announced the royal commission, it said quite rightly that the inquiry was needed because the banks and financial system had become a political football. Historically, politicisation of the banks has been common. But few understand the risk it brings to economies and their communities. History tells us that once banks become the subject of public suspicion and mistrust, the royal commissions that follow can have unintended and detrimental outcomes.
