The Federal Government will establish a banking tribunal to help deal with consumer concerns.

The idea emerged during this week's parliamentary hearing with the heads of the big four banks.

The big banks were brought before a senate inquiry this week, and like troublesome children in the principals’ office, the heads of ANZ, NAB, CBA and Westpac apologised for their conduct and promised they would improve.

A lot of important points were rushed through, with issues including interest rates, credit card fees, unjustly insurance practices, dodgy financial planning, and the lack of responsibility among senior executives when egregious mistakes are made.

Amid spin and obfuscation, Australians learned that:

  • The Commonwealth Bank has had to pay a further $11 million in compensation to clients who received dodgy financial advice, on top of more than $50 million already disclosed. About 10 per cent of the 6,000 cases reviewed so far have warranted compensation – and there are still many cases left to resolved.
  • After media scrutiny of its CommInsure arm, the bank has reviewed and paid out at least 17 claims it had previously denied and continues to review others – despite this not one person has lost their job.
  • Several of the ANZ traders implicated in the Bank Bill Swap Rate rigging scandal are back at work while the matter is still being prosecuted by ASIC through the courts.
  • ANZ was made aware of a serious case of fraud in relation to loans worth almost $1 billion, but it took them six months to refer the matter to ASIC and the police.
  • ANZ has reported 45 financial planners to ASIC in the past year alone – but would not say what happened to their clients or whether compensation has been paid.
  • Not a single NAB senior executive lost their job over the financial planning scandal, in which 750 customers received bad or no advice.
  • Westpac acknowledged the bank had investigated cases of customer incomes being inflated on loan paperwork but refused to give more details 

An exchange between Liberal MP Julia Banks and ANZ boss Shayne Elliot formed a synecdoche for the entire inquiry.

Ms Banks asked: “Do you think as a CEO who earns millions of dollars, it’s OK to answer questions here by saying; ‘Yes, we made a mistake, we fixed it and I apologise’. How many times can you say that? Do you think that’s adequate?”

Elliott replied: “I think that’s the reality of large organisations, that when things go wrong our responsibility is to fix them and make sure they don’t happen again and make sure our customers are treated respectfully.

“But the reality is that most things don’t go wrong and that most of our customers are satisfied with the bank.”

After the hearing, Prime Minister Malcolm Turnbull announced the Government will establish a tribunal to deal with consumer claims, and that banks had voiced support already.

“We will get a low cost, speedy tribunal to deal with these types of consumer complaints, customer complaints against banks,” he said.

“This will be real action.”

Westpac's CEO Brian Harzer said in the hearings this week that the idea of a tribunal was raised during talks with Treasurer Scott Morrison in April this year.

But Labor still says it is not enough, with Shadow Financial Services Minister Katy Gallagher describing the tribunal as a “stitch up”.

“The banks openly admitted to widespread failures and problems within their organisations with examples of fraudulent conduct, professional misconduct, illegal or unethical behaviour, overcharging on fees, inappropriate financial advice and staff performance incentives designed to cross-sell bank products,” Ms Gallagher said.

“The apologies and promises to make things right have been given before. But nothing ever changes.

“The only way to get to the bottom of the rip offs, give a voice to those affected and prevent these scandals from happening again is to hold a Royal Commission.”