Source: Federated Farmers
Federated Farmers says the broad scope of the banking inquiry announced today will hit the mark for farmers and rural communities.
“We’re pleased to see the Government announce a wide-ranging inquiry that will leave the banks with nowhere to hide,” Federated Farmers banking spokesperson Richard McIntyre says.
“Farmers have been asking serious questions about the levels of competition, profitability and transparency in rural lending for a long time now – and it looks like they’re about to get answers.
“This inquiry is well placed to shine a bright light on parts of our rural banking system that, until now, have been allowed to operate in the shadows.”
Concerns about banking have consistently topped the list of issues in Federated Farmers’ regular farm confidence survey.
“Any concerns Federated Farmers had about just how ‘rural’ this inquiry would be have been well and truly put to bed with these terms of reference,” McIntyre says.
“Everything we hoped to see included is in there, including questions about rural banking competition, transparency mechanisms, credit risk models, and open banking.
“There are also some very specific questions about the return on capital banks are getting from rural lending and the level of interest rates charged to the sector.”
Federated Farmers are particularly pleased to see the inquiry will be taking a closer look at the impact of Reserve Bank capital requirements and credit risk models on rural lending.
“The involvement of Parliament’s primary production select committee will ensure a real rural focus to this inquiry and gives us a lot of confidence,” McIntyre says.
“Many of those members live in rural communities and have practical hands-on farming experience. They’ll know exactly which trees to shake and which stones to look under.”
McIntyre says that Federated Farmers will be engaging in the select committee process and making a comprehensive submission on behalf of their members.
“Federated Farmers have been leading the charge to get this rural banking inquiry over the line but there’s still a big job to be done,” McIntyre says.
“We need to make sure the rural voice stays front and centre during this process so we can find some genuine, practical and rapid solutions that will improve the lives of farming families.”
The full terms of reference can be found here.
The closing date for submissions is 11.59pm on Wednesday, 25 September 2024.
