Candid Canberra

There was a moment of pause with Korean War veterans at the 11th hour on the 11th of the 11th, in the chilly Seoul sunshine.

There, the Prime Minister marked the World War I armistice and laid a wreath in special memory of the 340 Australians who died between 1950 and 1953 on the Korean peninsula.

But before that, and again after, she's had her eye on matters back home, launching an all-guns-blazing assault on Australia's banks, in the shadow of G20 plans to apply strict new liquidity rules.

Australia is concerned about the planned rule changes because they would disadvantage institutions in countries with relatively low debt - countries like Australia.

The Government has urged other countries to allow an exemption for Australian banks, which are among the most highly rated and stable in the world.

So Ms Gillard and Treasurer Wayne Swan find themselves in the somewhat uncomfortable position of having to defend the four pillars of our financial sector while simultaneously trying if not to tear them down exactly, then at least to erect a few supporting pillars in between.

In other words, they're acutely aware of the contradiction in blasting the banks for extra-curricular interest rate rises at home while being seen to make special pleading for them on the world stage.

And so, they've been getting in some early jabs ahead of the G20 opening, later tonight.

Ms Gillard told journalists on arrival in Seoul that their "arrogant" behaviour had to stop.

She's told a high-powered G20 business leaders' lunch that bank "ripoffs" would not be tolerated. And Mr Swan has declared that there'll be not a figleaf of an excuse for any bank to raise rates beyond official levels as a result of what is decided at the G20.

Based on current form, though, the tough talk seems unlikely to stop them. The Government is hoping the stroke of a legislative pen might soon have more impact.

But is the pen really mightier than the sword? They might just need a bit of both.

Later...

The PM has just baulked at her own anti-bank rhetoric while delivering a speech to G20 business leaders. A written text of her speech, issued in advance, pulled no punches.

"The Government shares this concern and anger which is why we are delivering reforms that will boost competition within the mortgage market" she said. "This will empower consumers to walk away from those banks that are ripping them off... The current mortgage rip-off in Australia has nothing to do with the G20 proposals."

The delivered version doesn't accuse the banks of rip-offs directly. Was it the presence of the ANZ's Mike Smith in the audience wot dunnit?