CANBERRA, Nov. 30 (Xinhua) -- Australian Prime Minister Malcolm Turnbull has caved in to pressure and announced a royal commission to investigate the misconducts of banks and the financial sector.
Turnbull announced the inquiry on Thursday after months of repeated calls by the opposition Australian Labor Party (ALP) for establishing a commission to probe into the alleged misconducts and frauds of Australian banks, insurance companies and funds.
The prime minister and the banks had been rejecting the proposal, saying it was unnecessary and a waste of money.
However, their attitudes changed amid mounting public discontent and pressure. The big four banks of Australia wrote a letter to Treasurer Scott Morrison asking for a "properly constituted inquiry into the financial services sector," saying it was "now in the national interest for the political uncertainty to end."
Turnbull cited the letter as the reason for his turnaround on the issue, agreeing that "speculation about an inquiry cannot go on."
The royal commission is granted a budget of 56.7 million U.S. dollars and February 1, 2019 as the deadline.
Turnbull said it would be a "comprehensive" review of the financial services sector that would analyze "banks, big and small, wealth managers, superannuation providers, and insurance companies."
Nigel Scullion, interim leader of the Nationals, on Thursday welcomed Turnbull's decision.
"This comprehensive inquiry became necessary to restore trust and confidence in Australia's banking and financial sector following years of concerns, particularly in rural and regional communities, about alleged misconduct and unethical behavior by the banks," Scullion said in a statement.
