Joe Hockey stands firm as he wins Greens support in his battle with the banks

THE Greens have backed Joe Hockey's plan for greater bank competition, suggesting action though private members' legislation has "potential".

Coalition treasury spokesman Joe Hockey talks to reporters in Sydney. Picture: Alan Pryke

THE Greens have backed Joe Hockey's plan for greater bank competition, suggesting action though private members' legislation has "potential".

Greens leader Bob Brown said today he wants to meet the opposition treasury spokesman to discuss “the way forward to give Australian deposit holders and borrowers a better go”.

“Joe's nine-point plan is a pointer to better transparency and better competition which of course is good for customers,” he told ABC radio.

Mr Hockey welcomed the support from the Greens and said he was not backing down on his push for reform, despite a fierce attack on him yesterday by ANZ chief executive Mike Smith, who accused the frontbencher of having a personal vendetta on the issue.

“We're not backing down one iota,” he said.

“As for Mr Smith, he earns $50,000 a day. But the people who underwrite his bank earn $50,000 a year. And they're the people we're concerned about.”

Senator Brown said the Greens shared Mr Hockey's view that an Australian Competition and Consumer Commission review of whether banks are involved in collusive price signalling on interest rates “will do no harm”.

“We'd like to know what Mr Hockey's priorities are and add a few ideas of our own, like ending the ATM fees rip-off.”

Senator Brown referred to Greens MP Adam Bandt, who has a bill before the lower house in the next sitting period to crack down on “unfair” $2 bank ATM fees, mortgage hikes and exit fees.

Senator Brown said the banks had booked records profits in the last few days and suggested the Greens and the Coalition could take action through private members' legislation.

“I would be interested to talk with Joe Hockey with no preconditions about how we could through this new period of parliament, which has got great potential, talk about the way forward in terms of getting a better outcome.

“It's a bit early to be talking about legislation. But obviously down the line, that's got potential,” he said.

Welcoming Greens' support, Mr Hockey said: “Anyone who reads the Coalition's nine-point plan to create more competition in the banking sector would say `well, that looks pretty obvious'. Even the government's saying that now, but they never want to admit it.

“We welcome profitable banks but we love competition in our banking system. There has been a reduction in competition over the last three years, and the government hasn't lifted a finger about it.”

Mr Hockey said a more competitive industry would ultimately benefit homeowners, small business owners and credit card holders.

“I welcome the fact that the Greens, the independents and others are jumping on board because this is a sensible plan to get on with the job of delivering more competition in banking services,” he said.

Mr Hockey has called for greater competition in the banking sector and has vowed to try and prevent banks from profiteering on interest rates.

He has also been criticised by some shadow cabinet colleagues for comments he made in relation to the use of “levers” to prevent banks from lifting interest rates beyond the official rate set by the Reserve Bank.