Consumers should benefit from greater competition in the financial services industry thanks to the federal government's response to the Murray inquiry, but will have to bear the cost of some reforms.
The government has agreed to introduce most of the inquiry's recommendations, including a crackdown on credit card surcharges, more choice in default superannuation funds, and better qualifications for financial advisers.
Also, banks will have to retain additional money on their books to protect against future financial shocks.
The Australian Bankers Association warns that bank customers will have to wear the cost of their raising extra capital.
ABA chief executive Steve Munchenberg says bank customers could face interest rate hikes on their home loans, similar to those introduced by Westpac last week.
"I know people won't see it like this when they are sitting around their kitchen table looking at their mortgages, but in many ways that extra cost is an investment in the security and safety of Australia's economy in the future," he told Sky Business.
"The next time Australia is hit with some sort of crisis ... if we have got very strong banks then we are all going to benefit from that in terms of keeping our jobs, keeping our businesses going and keeping our system strong.
"There is a cost to that. Some of that is going to be borne by shareholders, including our own retirement funds and superannuation, and some of it is going to be borne by customers."
Asked why banks don't opt to reduce dividend payments to shareholders to help cover the extra costs, Mr Munchenberg said they needed to remain attractive to investors.
But while bank customers face handing over more money, they stand to benefit from greater competition.
The Customer Owned Banking Association, which represents credit unions, building societies, mutual banks and friendly societies, welcomed the government's commitment to regularly review competition and increase accountability of regulators.
It also praised the crackdown on credit card surcharges, tougher requirements for financial advisers and new powers for ASIC to ban bad financial products, saying they would unleash genuine competition in retail banking.
However, credit card provider Mastercard had a mixed response - welcoming the ban on credit card surcharges that exceed the cost of processing payments but slamming the government's decision to regulate interchange fees.
Mastercard said getting the Reserve Bank to regulate the fees banks charge each other for accepting card-based transactions would lead to increased costs for consumers and fewer low-rate credit cards.
Meanwhile, the planned superannuation reforms were welcomed by CPA Australia, which represents certified practising accountants, and funds management giant Challenger.
Challenger boss Brian Benari said the decision to allow superfund trustees to roll retirees into a Comprehensive Income Product for Retirement (CIPR) would allow people to opt in to a retirement solution which suits their circumstances.
