ACCC wants Treasurer Josh Frydenberg to order inquiry on banks

The consumer watchdog has reportedly asked the federal treasurer for approval to conduct another inquiry into the nation’s big banks.

The Australian Competition & Consumer Commission has reportedly sought approval from Australian Treasurer Josh Frydenberg to conduct another inquiry into the banks after persistent complaints customers are not being treated fairly.

The Australian reports that the ACCC wants a formal directive from Mr Frydenberg so that the inquiry has more power to demand documents from the big banks.

Treasurer Josh Frydenberg with ACCC Chairman Rod Sims. Picture: Kym Smith

Consumer group Choice has accused the banks of conducting a “catch and keep” policy, where they deter customers from switching and exploit them with high fees and interest rates.

A spokesman for Mr Frydenberg said he had not received a request from the ACCC but The Australian reports one source as saying the treasurer could approve an inquiry within weeks.

Australia's 'big four' banks ANZ, Westpac, the Commonwealth Bank and the National Australia Bank. Picture: AAP

Denying any request could be politically damaging for the federal government given the anger directed its way before establishing a royal commission into the banking industry in 2017.

The banks meanwhile are under pressure to implement the dozens of recommendations from the Hayne financial services royal commission.

The ACCC has previously hinted at wanting to understand how regulatory measures are stopping smaller banks from competing with the big four — Westpac, Commonwealth Bank, ANZ and National Australia Bank.

The Productivity Commission slammed the big banks last year in a report saying they were overcharging loyal customers.

To read more visit The Australian