The Financial System Inquiry Interim Report Got 6,300 Responses - 5,000 Of Them About Credit Card Surcharges

The Financial System Inquiry (FSI) has received more than 6,300 submissions in response to points set out in its interim report.

On its website, the FSI revealed more than 5,000 submissions were received on the issue of credit card surcharges. The Inquiry also received around 700 relating to the issues of “too-big-to-fail” or “bail in”.

Some of the larger players making submissions include MasterCard, ASX Ltd, Commonwealth Bank, Infrastructure Australia, Macquarie Group, NAB, ANZ, Visa, RBA, Westpac and AMP.

The 400-page FSI interim report explores the notion that when a bank fails, the institutions it owes money to take the full force of the hit, rather than having to call in the taxpayer.

See an example from the report below.

Introducing credible ways to impose losses on creditors in the event of failure assists in achieving orderly resolution with minimal use of taxpayer funds. This goes some way to addressing perceptions that some institutions have an implicit guarantee by reducing expectations of Government support, and encouraging investors to pay greater attention to risk.

Submissions to the FSI are being published progressively over the coming weeks.

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