The Commonwealth Bank of Australia (the Group) has today lodged its submission to the Financial System Inquiry.
The Group welcomes the opportunity to work with the Inquiry to develop constructive ideas and tangible outcomes to address the opportunities and challenges faced by the financial system.
The Group believes the Inquiry should focus on three priorities to build on the inherent stability and resilience of the Australian financial system:
· Support a strong banking system to fund Australia’s growth;
· Harness the potential of the digital economy while protecting customers’ information; and
· Ensure security in retirement with a sustainable superannuation system.
The future will be shaped by the role that technology plays in our globalised lives, the opportunity offered for an ageing population by a growing pool of retirement savings, and the influence of offshore forces. The Group recommends:
· Increase the depth and liquidity of domestic debt markets by supporting both supply and demand;
· Apply consistent regulatory standards to rapidly developing digital financial services to protect customers and system stability;
· Clarify superannuation regulatory boundaries to improve efficiency and support the ability of savers to prepare for a self-funded retirement;
· Improve the efficiency and adaptability of the regulatory system;
· Improve financial literacy to help people make informed decisions about their future;
· Review financing options for important segments of the economy, in particular small businesses and infrastructure projects; and
· Address issues related to the understanding and affordability of insurance.
The Commonwealth Bank looks forward to working with the Inquiry over the next few months as the panel works through the various issues.