Banking Royal Commission To Get Under Way -Myassignmenthelp.Com

Question: Discuss About The Banking Royal Commission To Get Under Way? Answer: Introducation With the announcement of the Royal Commission inquiry into the finance sector, the Malcolm Turnbull government gave a hot topic for debaters just before Christmas. The Prime Minister announced the decision after the four major banks of Australia- Westpac, ANZ, NAB and the Commonwealth Bank sent a letter of support for the inquiry. Kenneth Hayne, former judge of the honorable High Court is set to lead the inquiry team that would start proceedings starting February 12. The Labor party has welcomed the decision of the government and designated it as the victory of the people who are the most affected by the fraudulent activities of the banks. Bill Shorten, opposition leader described the announcement as a victory for Labor. He further aired his view that the commission would bring out the hidden secrets of the banks and give justice to the people. It needs mentioning that the opposition party has been demanding for the Royal Commission inquiry into the corporate affairs of the Commonwealth Bank for three years. The bank has been in news for its repeated breach of the code of conduct being involved in 55,000 cases of terrorism financing and many others, as reported by AUSTRAC. Many experts are of the view that the Royal inquiry, with its immense powers, would be able to dig in deep into the scandalous world that surround the CBA culture. In reality however, the Royal Commission has a daunting task to scrutinize every aspect of the financial sector including banks. Some have also questioned its effectiveness viewing the broad and lengthy terms of references. These terms of references further forbid the Royal Commission from reproducing other inquiries. Due to this fact, they are of the view that the misconducts of the Commonwealth Bank may not even be touched. Another concern regarding the Royal inquirys influence on CBA is its limited time. The commission has only a year to investigate everything and produce those before the public. However, the inquiry would have been effective had it given the license to carry on for several years. To say that the commission would actually have an influence on the Commonwealth Bank and its corporate governance would be wrong. The reason is its past records that exemplify the commissions marked failure to bring a change. The case of the 1991 Royal Commission into Aboriginal deaths i n custody proved largely futile as the number of Aboriginal deaths in custody continued to rise. It is also significant to note that the commission had run for more than three years and yet failed to put a check in the number of deaths or even prisoners. This contradicts the statement that given a longer period, the Royal Commission can produce crucial results. Another important aspect of the inquiry is the amount of money that would go into it. It is estimated that around 75 million of Australian dollars, the money that belong to the countrys taxpayers, would go into the investigation. In addition to this sum, the four banks are also predicted to drain a wealthy amount to put forward their side of the story, CBA included. It is therefore going to put huge financial pressure on the government. References Commonwealth Bank admits to failures in money-laundering case. (2018, January).The Guardian. Retrieved from https://www.theguardian.com/australia-news/ Letts, S. (2017, December 15).CBA warned terrorist his account was about to be closed: AUSTRAC.ABC News. Retrieved from https://www.abc.net.au/news Corporate Governance Council. (2018, January).Asx.com.au. Retrieved 30 January 2018, from https://www.asx.com.au/regulation/corporate-governance-council.htm Osborne, P. (2018, January 22).Banking royal commission to get under way.NewsComAu. Retrieved from https://www.news.com.au/