The Australian Bankers' Association (ABA) remains concerned with the direction of the Coalition's proposals on bank regulation, although it said the industry welcomes clarification of the Shadow Treasurer's comments.

Shadow Treasurer Joe Hockey this morning made a speech where he outlined a nine-point plan for the banking sector.

"On the specific policy proposals put forward, the ABA says that most are either existing in the current marketplace or would be welcome," according to ABA chief executive Steven Münchenber.

ABA agrees that the Reserve Bank of Australia should regularly publish information on banks' interest rate margins, return on equity and profitability; Australia Post should be a distribution network for financial service providers; treasury and RBA should improve liquidity of the residential and commercial mortgage-backed securities market; FSRA should be simplified; APRA must explore risk weighting on small business loans; and Banks should be able to issue covered bonds.

However, the ABA objects that ACCC be given powers to crackdown on price signalling. It also argued that APRA need not assess whether banks are participating in risky behaviour as this is already a central role for APRA and no additional investigations are necessary. On the Coalition's proposal that there should be a Wallis-style inquiry into the financial system, the ABA stands neutral, saying "the banking industry is subject to a constant stream of inquiries but we would be happy to co-operate with any further inquiries."

Mr Hockey concluded his speech with a call for a Social Compact and noted that it must "...include direction on competition, expansion, expectations of credit and savings, community service obligations, risk and rates."

"This statement leaves the door open to re-regulation and high levels of political interference from Government in commercial-decision making," Mr Münchenber said.