Australia unveiled tough changes to finance laws Sunday, banning unpopular mortgage fees and cracking down on price collusion between major banks in a bid to boost competition in the sector.
Treasurer Wayne Swan said the reforms aimed to empower consumers, bolster smaller lenders and secure credit flows to both consumers and business, pledging a "fair go in the banking system".
Targeting Australia's "big four" banks, the reforms ban exit fees on new home loans and allow the competition regulator to prosecute lenders for colluding on rates, after large hikes sparked an angry consumer backlash.
An additional four billion dollars would also be injected into the mortgage-backed securities market under the reforms, Swan said.
"Build(ing) up competition in our banking system will ensure that interest rates are lower over time," Swan told reporters. "It's very important that we don't let the big banks off the hook."