‘Deep concern’: Draft letter reveals CBA's private fight against RBA surcharging reforms
In a confidential letter obtained by this publication, the leading bank attempts to rally opposition to the key proposals which it says could "jeopardise" the payments system.
The Commonwealth Bank has been trying to privately coordinate industry opposition to key parts of the Reserve Bank’s overhaul of surcharging and merchant costs, complaining that the central bank risks serious “unintended consequences” by moving too quickly.
The behind closed doors effort has rankled sections of the payments industry which see the claims against the RBA's proposals as alarmist and part of a campaign to protect the significant interchange fees it collects, which CBA claims is critical to maintain payment infrastructure.
In a confidential letter drafted by CBA and obtained by Capital Brief, Australia’s biggest bank expresses “deep concern” over the central bank's bid to further regulate payments, arguing its proposals would “jeopardise” Australia’s low-cost payments system and stifle innovation.
“The speed at which proposals have been tabled means the proposals themselves are sitting on unsteady data and analysis, and the short time frame of the consultation process has not allowed sufficient alignment between policy objections and likely outcomes,” CBA wrote in one version of the letter.
