Australia considers salary cap for banks

Bank executives in Australia could soon see their salaries capped in line with the government's planned reforms of the financial sector.

Speaking to an Australian television station on Tuesday (November 9th), treasurer Wayne Swan said the Labor administration is looking to provide shareholders with more input on remuneration policies.

According to Reuters, he also confirmed that the financial regulator is working with the nation's four main banks to discuss ways of curbing excessive salaries for directors.

"The government is very keen to see some action in that area," Mr Swan commented.

Many top executives have seen their salaries rise this year as bank share prices recover amid the stabilising economy.

A package of reforms designed to improve competition in the Australian banking industry is due to be released in December, with the major operators currently controlling more than 80 per cent of the mortgage market.

The industry has been made the subject of an inquiry from Australia's upper house senate, which is looking at issues such as bank fees and competition between banks and other lenders.