Banking deregulation and its effects on Australian consumers — The policy debate

Abstract

After close to a decade of the rapid deregulation of Australian banking, for the first time, the policy debate centres on deregulation's effects on the consumer. The Parliamentary Inquiry into the Australian Banking Industry chaired by Stephen Martin, which reported in November 1991, agreed with consumer groups that deregulation has not delivered all the envisaged benefits to ordinary Australians. It recognised that market forces alone were not sufficient to ensure that bank services were delivered equitably. However, it rejected consumer recommendations for a statutory banking code and regulatory controls to ensure banks met their social obligations.