Banking CEOs call out 'bank beat-up'

From left: Shayne Elliott CEO of ANZ, Ian Narev, CEO of Commonwealth Bank, Andrew Thorburn, National Bank Australia and Mark Wilson of Aviva.

Australian bank chief executives said government and media scrutiny on the financial institutions was a "bank beat-up" at an event in Auckland last night.

Andrew Thorburn, group chief executive of National Bank Australia, was joined by Kiwis Ian Narev and Shayne Elliott of Commonwealth Bank and ANZ, respectively, in a panel discussion hosted by Mark Wilson, group chief executive of Aviva in the United Kingdom.

Thorburn acknowledged that 25 years without recession in Australia had bred a culture of entitlement in the banking system but said part of the declining trust in the institutions was due to a 24-hour news cycle in which "some things run in the media which shouldn't."

"People feel left out of the system, and banks become the targets," he said.

Thorburn said the scrutiny the banks face in Australia doesn't reflect the current strengths of the system and said the parts of banking which "we're not proud of" are in the past.

Elliott, of ANZ, agreed with Thorburn and said banks have lost touch with the community.

"People forget what we do for them," he said. "We're there for first-time home buyers, we're there to help save for retirement.

Thorburn also pointed the finger at politicians saying that politics had become too personal which wasn't conducive to good policy. He said regulation, while sometimes good, made banks inward-looking and risk-averse.

Asked about the impact of US President Donald Trump, Narev said his election is a legitimate outcome of democracy and newspaper columns complaining about him won't help.

Elliott said increased media cycles meant customers felt more exposed and banks had a responsibility to help them understand the risks.

Thorburn said he believed risk is up in the world and banks need to be adaptable and ready.

When queried on Auckland house prices, Elliott said that from a purist perspective, "the market is what the market is," and "magic bullet solutions can increase complexity."

The panel, speaking at a University of Auckland school of business event, said there is a need for long-term infrastructure planning from government in order to be ready for massive numbers of immigration.