Aust, banking proposals gain support

Press, 6 March 1984, Page 27

Aust, banking proposals gain support

NZPA-AAP Canberra

The Australian Chamber of Commerce has strongly favoured new banking and foreign exchange licences, interest rate deregulation and offshore banking in its response to the Martin Report on the Australian Financial System.

The chamber has released the submission made to the Federal Treasurer, Mr Paul Keating, on the Martin Report which was made public last month.

The report says the Government should allow banks to set their own interest rates and pay interest on cheque accounts, and admit four to six new foreign and domestic banks.

It recommends against supporting offshore banking units, issuing National Recovery Bonds or Australian Housing Bonds as proposed in the last Federal election campaign or putting more restrictions on the non-bank financial sector by proclaiming part nine of the Financial Corporations Act. The Chamber of Com-

merce says it believes a maximum of six licences for new domestic or foreign banks is too restrictive and it asks that the Government consider granting more licences within a few years. It supports interest rate deregulation and removal of other restrictions on banking activity and it opposes any move to proclaim part nine of the act, which it says will put unacceptable controls on the financial system.

It also supports Martin’s recommendation to broaden access to the cheque payments system and to establish an Australian Payments System Council to help develop domestic payments systems.