Oh dear! We have a Senate inquiry looking at competition in the banking sector.
Only in Australia, following a global financial crisis, would we have an inquiry which focuses completely on the wrong issues. We should be looking at our system of financial regulation. As I have noted before, the fact that the federal government underwrites our banks means that we need to reconsider the range of activities (insured) banks are allowed to engage in. Once these new rules are sorted out there may or may not be a competition issue in banking – but we cannot say at present.
So we need a banking inquiry – but can it be the right one?