Hoban: Bank system must be fair
Treasury minister Mark Hoban comments on the banks tax:
“Excessive risk taking in the banking sector was a significant contributory factor in the recent financial crisis.
“Alongside the wider financial regulatory reform aimed at increasing the resilience of the financial sector, the levy is intended to ensure that the banking sector makes a fair contribution that reflects the risks it poses to the financial system and the wider economy, and to encourage banks to move away from riskier funding – problems with risky funding led to serious liquidity problems that played a key role in the financial crisis.
“We have the opportunity to send a clear message to the public that the banking system now operates in a way that is fair and stable and no longer rewards employees based on short-term performance whilst leaving investors and taxpayers exposed to the long-term risks.
“It is better for the industry to lead these changes.
“Systemic firms must be able to demonstrate that they have credible plans for recovery in a crisis.”
