Let’s talk: Should there be a Royal Commission into the banks?

After the Reserve Bank’s latest cut to the interest rate, people watched on to see if the banks would pass on the deal to customers.

Once again they were disappointed with ANZ, the Commonwealth Bank, NAB and Westpac all choosing to keep their interest rates the same.

Now Labor has come out swinging, doubling down on its call for a Royal Commission into the big four.

Labor Senator Katy Gallagher says more needs to be done to keep them in line and that a Royal Commission would do just that.

“We all agree we need a strong and competitive banking and financial services system but also need one that is responsive, accountable and transparent to its customers,” the Shadow Minister for Small Business and Financial Services told the ABC.

“We would argue that there is enough evidence there that would warrant a very close examination of the issues facing Australia’s financial services system and that a royal commission is the best way to do that.”

While Malcolm Turnbull has openly said he is not a fan of the idea of an inquiry, he did warn the banks that they operate with a social licence from the community.

It was the greed of banks all over the world, but especially in America, that saw the world fall into the GFC in 2008.

There have been calls ever since then for banks to be subjected to stricter rules and government regulation to make sure they are providing the best deals for their customers and not just keeping their own interests in mind.

Those who argue for a Royal Commission say it could go a long way towards holding the big four accountable, while others say it is a waste of money that won’t make a difference in the end anyway.

What are your thoughts?

Should there be a Royal Commission into the banks? Should they be forced to pass on interest rate cuts to customers?