Big bank bosses front up for 2nd grilling

WHAT'S IT ALL ABOUT:

* The bank hearings were set up by the government. The first was held in October.

* This followed community uproar when the big four failed to pass on a central bank interest rate cut in August.

* It also headed off Labor and Greens calls for a full blown banking royal commission.

WHO'S GRILLING THE BANK BOSSES:

* The House of Representatives Standing Committee on Economics.

* The committee is chaired by government backbencher David Coleman, who happens to be the member for Banks, with Labor frontbencher Matt Thistlethwaite as deputy.

* There are six government members, three from Labor and Adam Bandt for the Greens.

* This is the second round of hearings on the performance of the banking system and how big banks balance the needs of borrowers, savers, shareholders and community.

* The chief executives of all the big four banks - NAB, CBA, Westpac and ANZ - have been called to appear.

WHAT THE BANKS NEED TO EXPLAIN:

* How they make interest rate decisions.

* How they're enhancing consumer protections and responding to reforms.

* How international economic and financial developments affect Australia.

* How developments in regulation, including capital requirements, affect their policies.

* What they think about the economy's performance.

KEY ISSUES FROM THE OCTOBER HEARING:

* The banks said Australians should not expect them to always match interest rate cuts by the central bank.

* They blamed funding costs as a major factor not to cut.

* They also admitted there was a "trust gap" between the industry and the community.

* The committee extracted apologies for past wrongs against customers.

* There were questions about why credit card interest rates are so high.

* This appears to have had some effect. ANZ last month cut rates on two cards by between 1pct and 2pct.

OTHER ISSUES FOR THIS HEARING:

* Credit card interest rates.

* Housing market issues.

* Senior executive accountability when things go wrong.

* Industry association the Australian Banking Association - which is making its first appearance before the committee.

WHO'S APPEARING:

* NAB chief Andrew Thorburn today.

* CBA chief Ian Narev and ANZ boss Shayne Elliott on Tuesday March 7.

* Westpac head Brian Hartzer and ABA CEO Steven Munchenberg on Wednesday March 8.