No great virtue in bank bashing

Henry Ergas explains the simple folly of Labor’s populist bank bashing;
Labor, which didn’t need much encouragement to indulge in a bit of bank bashing, promptly passed an appallingly drafted amendment to the competition laws, prohibiting banks (and banks alone) from engaging in any form of communication that might disclose how prices were set.

Well, now our villainous financiers will be forced to do precisely that, with their CEOs being required to lift the kimono on those most private of parts, “the costs of funds, the impacts on margins and the basis for bank interest rate pricing decisions”.


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