Joe Hockey Has The Report From The Murray Financial System Inquiry

Photo: Getty / James Alcock

The final report from Financial System Inquiry was delivered today to Joe Hockey, according the Treasurer’s office.

Hockey now has to decide when to release the findings, which could have major ramifications for the future of the financial industry, and in particular the four major banks and Macquarie.

Inquiry chairman David Murray, the former chief executive of the Commonwealth Bank, is expected to outline the report recommendations in a speech to the Committee for Economic Development of Australia scheduled for December 8.

The inquiry has been looking at ways to sustain confidence in the Australian financial system, how Australia funds its future growth, competition and international competitiveness, and the current cost, quality, safety and availability of financial services.

One of the major issues is the concept that banks are considered too-big-to-fail and must be supported in a crisis by the federal government.

There has been speculation that the banks might be forced to hold more capital against their mortgage and take a greater share of risk in the event of a financial crisis. The major banks have been intensively lobbying on this in recent months, arguing that the sector has sound fundamentals and warning against “importing foreign concerns” to the Australian market.

The superannuation industry and the issue of high fees has been widely canvassed in submissions to the inquiry.

The inquiry received more than 6,500 submissions in response to an interim report which was released in July.

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