Reforms to kickstart era
THE Hammond Review’s recommended reforms to the banking sector could usher in a new era of competition to better position Heritage Bank and other customer-owned institutions to challenge the dominance of the four major banks, CEO Peter Lock said.
The Hammond Review into Reforms for Co-operative, Mutual and Member-Owned Firms handed down its 11 recommendations last week.
Mr Lock endorsed the recommendations and welcomed the federal treasurer’s commitment to implement all of them.
The Hammond Review recommends a number of changes to improve ability of customer-owned financial institutions to raise capital.
“Customer-owned institutions have been hamstrung in the past because of barriers that made it difficult for us to raise additional capital to support growth,” Mr Lock said.
“That has limited our ability to grow while still remaining true to our customer-focused philosophy.
“Access to capital is increasingly important as all financial institutions face the need to invest heavily in digital technologies.
“The Hammond Review has recommended the required changes to legislation and the Corporations Act to provide customer-owned institutions with greater scope to raise capital.
“This could be a game-changer for the banking sector as it will help pave the way for Heritage and other customer-owned institutions to start realising our largely untapped potential to be a stronger competitive force.
“The reforms are great news for Heritage and for consumers looking for a better deal on their banking and finance needs.”