Small banks take big four gripe to TV

Smaller banks are taking their argument that the "big four" should pay something for their government guarantee to the small screen.

The Customer Owned Banking Association is launching a television and radio campaign on Thursday to tell consumers about what they believe is an unfair advantage the ANZ Bank, Commonwealth Bank, National Australia Bank and Westpac enjoy over other financial institutions.

With an interim report into the Australia's financial system just weeks away, COBA wants to highlight the problem of Australia's "too big to fail" banks, where the big four would be bailed out by the government in a crisis.

A bail-out would ultimately be funded by taxpayers.

Credit unions, building societies, mutual banks and friendly societies - which COBA represents - do not enjoy such support.

COBA chief executive Louise Petschler believes the financial system inquiry provides a once-in-a-generation opportunity to put consumer interests first and produce a more competitive banking market.

"Let's not put `too big to fail' in the `too hard to fix' basket," she says.