Banking competition reforms, unveiled by Treasurer Wayne Swan on Sunday, give the Australian Competition and Consumer Commission (ACCC) the power to investigate banks' media comments to see if they had encouraged rivals to also raise lending rates.
Australian Bankers' Association (ABA) chief executive Steven Munchenberg said the banks had not engaged in anti-competitive conduct.
"The industry rejects unfounded claims that there is any price signalling in banking and is concerned that price signalling laws will make it more difficult for banks to explain to their customers what may happen with the direction of interest rates on mortgages and savings," he said in a statement on Sunday.
The ABA says it is also concerned about a move to give consumers a portable bank account number, in the same way as they can transfer mobile numbers.
The government has asked former Reserve Bank of Australia governor Bernie Fraser to conduct a feasibility study into the issue.
"Account portability, if not properly considered and implemented, could also have major cost implications for smaller lenders, hurting their competitiveness," Mr Munchenberg said.
The ABA also suggested that moves to ban loan exit fees from July 2011 would hurt smaller lenders, while a crackdown on ATM fees would make it more difficult for smaller banks to deliver ATM services in rural and regional communities, it said.
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