Aussie parliament rejects sweeping probe into banks

Sydney

AUSTRALIA announced a limited inquiry into bank misconduct on Wednesday although a motion for a more sweeping investigation into the scandal-ridden financial system was narrowly defeated by the government in parliament. The latest inquiry targeting mistreatment of small business customers is the government's fourth measure this year to alleviate public concerns about the power of the big banks, following a series of revelations about misconduct.

But the conservative Liberal-led coalition used its one-seat majority in parliament to defeat an opposition motion for a far more powerful Royal Commission into the sector, which could have seen bank executives forced to testify. "A Royal Commission would send a signal internationally that there are structural problems with our banking and financial system which would have significant repercussions for confidence, international investment and for our AAA credit rating," Liberal MP George Christensen told Parliament.