Submission on Financial Markets Amendment Bill

The Commissioner has written to the Finance and Expenditure Committee recommending that so-called ‘woke banking bill’ should not proceed as it would prevent banks managing legitimate risk and will likely impose additional administrative costs on banks.

He argues that the Bill’s intention to stop banks from providing services from businesses on ‘murky’ environment, social or governance moral grounds, ultimately interferes with their ability to manage commercial and financial risks. He states: “Banks should be left to do what they are good at without government interference.”

In his submission, the Commissioner reiterates points he made to the committee during the recent inquiry into banking competition:

• climate risks are numerous and diverse, ranging from physical to reputational risks,
• climate and environment-related information requirements imposed by banks are in line with international trends, market requirements and free trade agreements,
• banks’ sustainability targets generally align well with the Government’s climate targets,
• what private businesses do with the information they collect is up to them.

Read the submission.