ME, Industry Super face political probe

ME Bank and Industry Super Australia will face a federal parliamentary committee this week to ensure they are providing their customers the support they need during the coronavirus pandemic.

ME Bank was forced to a reverse a policy that reduced the amount of money its customers could access from their redraw facilities during the crisis.

"The conduct of ME Bank has raised urgent questions about the security and flexibility of the savings of Australians with their mortgage products and necessitates scrutiny," chair of the House of Representatives economics committee Tim Wilson said in a statement on Sunday.

At the same time, he accused Industry Super Australia of publishing "dubious calculations" about the impacts of early withdrawals from superannuation accounts in response to the economic impact from the pandemic.

"Australians trust superannuation funds with significant savings, they hold a fair expectation that funds will provide accurate information and will act promptly if they are eligible for early withdrawal," Mr Wilson said.

The inquiry will also look into fraudulent claims made from super accounts.

The hearing by videoconference on Thursday will form part of the committee's ongoing review of the four major banks and other financial institutions.