Leading bankers and ex-bankers led by ANZ CEO Mike Smith have hit out at the political and media push for banks to match Reserve Bank of Australia rate cuts.
In
an opinion article in his name in the Australian Financial Review this morning, Smith said that "a strong banking sector and well-managed government finances are the best protection the economy can have to avoid a co-ordinated downturn". And he said Australia needs to have "a broader and more informed public discussion" about the health of the banking sector.
The Australian quoted NAB chairman Michael Chaney as finding politicians' constant criticisms of banks "extremely disappointing".
"Their criticisms are inconsistent with what I'm sure is their understanding of the term funding challenges the banks face in international markets, the increased capital and liquidity rules being imposed by regulators and the importance for the Australian economy of maintaining strong banks," Chaney was quoted as saying.
Former Commonwealth Bank CEO David Murray
told the Financial Review that politicians were "just playing normal bank-bashing games". "If you want [banks] to be unable to fund the economy, reduce their spreads, " he said.
Former NAB CEO Don Argus was even blunter, telling the Financial Review that "politicians that have never managed a balance sheet are trying to tell a banker how to".