Much ado about no real reform

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Treasurer Wayne Swan is limited in what he can do to increase the competitive pressure on the banks. He can ban exit fees, though it is hard to see how that will achieve his goal. He can also empower the Australian Competition and Consumer Commission to cut down on price signaling, although it is hard to see how the ACCC would have been able to prevent the Commonwealth Bank Of Australia's recent rate hike. Melbourne Business School economist Joshua Gans advocates the introduction of portable bank account numbers and loan balances, although this is a more radical proposal.