RBA shot down Bullock’s push to ‘lower the burden’ on small banks, fintechs
Internal documents show the RBA explored ways to benefit smaller payments players as part of the government’s productivity drive, but they were ultimately deemed unworkable.
Reserve Bank of Australia governor Michele Bullock instructed her policy team to find ways to support smaller banks and fintechs in a sweeping review of the payments system following an Albanese government request — but its suggestions were rejected as unworkable.
Internal documents released under freedom of information laws viewed by Capital Brief shed new light on the RBA’s closely-watched merchant costs and surcharging review which was published last year, and shows how a productivity push from the federal government fell flat in co-opting it.
“In response to a letter to regulators from the Treasurer and Finance Minister, the governor has indicated that the [Reserve] Bank would explore ways that it could lower the burden of card payments regulations on small issuers, such as small banks and fintechs,” the RBA payments policy team wrote in an August memo prefacing a preliminary assessment of the idea.
The letter referenced was one sent to 30 regulators and eight department heads sourcing ideas to boost productivity as part of the government’s economic roundtable.
