Australia's Treasurer Mr. Wayne Swan has warned opposition representative Joe Hockey of his proposal to put federal government reins on the banking industry.

Setting regulation on Australian banks will not be a good environment for the country's financial stability and wellness. He noted that the fact that Australia would adhere to the internationally recognized Basel 3 financial reforms would be enough to manage the Australian banking system.

In a statement, Mr. Swan said Mr. Hockey's comments "were not thought of and were a bit reckless."

In a related report on the World Today Mr. Swan said, "What he seems to be saying is that we should jump in the time machine and remove the Reserve Bank's independence by re-regulating interest rates.

"These statements have not been well thought out.

"I think they're all frankly driven by internal politics within the frontbench of the Liberal Party and his contest with [Andrew] Robb."

The Australian Banking Association (ABA) was also displeased with Mr Hockey's comments.

ABA Chief executive Mr. Steven Munchenberg said in a separately issued statement that considering price controls and coming from the Liberal Party was unbelievable.

Mr. Hockey made this statement in the light of the foreseen increase in interest rates being contemplated by the Australian banking industry even ahead and above the Treasury's benchmark rates.

Mr. Swan told the World Today: "What he seems to be saying is that we should jump in the time machine and remove the Reserve Bank's independence by re-regulating interest rates.

"These statements have not been well thought out.

"I think they're all frankly driven by internal politics within the frontbench of the Liberal Party and his contest with [Andrew] Robb."