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Big banks commit millions to new consumer protection fund, yet to pay a cent

The Commonwealth Bank has agreed to pay $25 million in penalties after corporate regulator ASIC found they’d manipulated the rate at which banks lend to each other.

NAB and the ANZ have also settled with ASIC over rate-rigging allegations, agreeing six months ago to put $20 million each into a consumer protection fund.

CBA has also committed to adding $15 million into the fund.

Financial Services Minister Kelly O’Dwyer says she believes ASIC has the promised funds.

“That’s my understanding.”

Ross Greenwood is disputing it, saying the banks are yet to send the cheques.

“The problem as I understand it is because you haven’t announced this financial consumer protection fund there is no fund so they haven’t paid the money into the fund.”

“Well, there is going to be an announcement into this particular fund,” Minister O’Dwyer says.

“We believe it’s incredibly important to provide financial capabilities across the board in Australia to help people be more financially literate.”

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