Distrust in peers ripe in banking C-suite
The publication of bank-level performance indicators of trust and confidence looks to be a reform too far for the Australian banking industry.One of the few grizzles in the sixth and penultimate report "independent governance expert report" of Ian McPhee for the Australian Bankers Association airs dissent within the sector on "measuring and reporting on its performance as an industry."At the industry level, the banks and the ABA have published research by Edelman Intelligence that found that 50 per cent of respondents ticked the box at the trusted end of the scale when asked for a view on "how much you trust that institution to do what is right" using a nine-point scale.But exploration of where this trust needle falls at the bank-specific level - and making that public - seems to be a testy topic.McPhee wrote that "in my previous report I indicated that it would be desirable for the industry to be clear about its intentions around public reporting by individual banks going forward, and even better if the major banks were to show the way in reporting individual results. "As part of preparing this report, specific feedback was sought on bank-level reporting, with some banks seeing benefit in bank-level reporting. However, McPhee wrote, "a common concern of measuring performance on a consistent basis across the participating banks was expressed, along with the ability to obtain adequate sample sizes being a particular concern for the smaller banks."McPhee's final report on the ABAs "better banking" reform program will be released in January 2018.