Refashioning the Private Public Partnership of Banking Around the Relative Strengths of Public and Private Sectors
Perspectives vol 4
Leading economic thinker and commentator, Dr Nicholas Gruen calls for banking reform in his essay Commoditising Banking: Refashioning the Private Public Partnership of Banking Around the Relative Strength of Public and Private Sectors.
Australian banks' profitable navigation of the Global Financial Crisis may be pleasing shareholders but the political and community reception has been hostile.
Dr Gruen proposes a viable, low risk policy reform which would address the current inequity in the structure of the Australian banking system.
His argument for a comprehensive micro-economic reform of banking holds the promise of simultaneously delivering greater financial security and substantially increased competition for Australian consumers.
"Finance sector reform has become a matter of heightened public interest and few things incite the passions as much as the profits and behaviours of 'The Banks'," says Mr Eric Sidoti, Director of the Whitlam Institute.
"The danger of course is that the heat being generated sheds no light whatsoever. Yet these are serious issues and they do demand thorough debate.
"The recent rhetorical banter around banking must be matched by the development of genuine policy options," says Mr Sidoti.