Westpac chief executive Gail Kelly says a proposed ban on mortgage exit fees and a crackdown on interest rate signalling won't improve banking competition.
She also called for moves to attract people to save more money in deposit accounts at the senate inquiry into banking competition.
Ms Kelly has told the inquiry they're broadly positive about the government's banking reform package as a whole, but wants to see people save more through initiatives such as tax concessions.
She said only time would tell if it was successful in achieving greater competition in the sector.
"We are broadly positive about the package as a whole," Ms Kelly told the inquiry in Sydney.
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"There are some elements that we are more welcoming of than others."
A ban on mortgage exit fees proposed from July 1 was unnecessary, she said.
"For us, it's not an overly big deal. If this legislation comes in, clearly we will apply it," Ms Kelly said of the exit fee ban.
"In principle our view is that is not something that the government should do - choose a particular fee to ban.
"We should really let the market do its job and provide different options and different propositions for customers that they can choose."
She says greater competition among banks for deposits has been one factor for higher funding costs.
It wasthe first time Kelly has responded to the federal government's banking reforms.
The CEOs of three of the big four appeared before the inquiry last December, where they calmly, yet passionately, argued that competition in the industry remained strong.
