How wrong those claims turned out to be. During the GFC, some Australian banks were found to have taken part in the slicing and dicing of US subprime mortgages.
As it turned out, the major Australian banks did have enough strength to stave off the crisis which hit other global banks. In New Zealand, the Australian-owned banks, such as the BNZ, ANZ, ASB and Westpac, stayed true to form and people with bank investments kept their money as finance companies failed around the country.
The Banking Royal Commission has now revealed not all is well in the Australian banking sector - highlighting some of the most evil practices undertaken by those in the industry.
Australian Prime Minister Malcolm Turnbull says in hindsight it would have been better for the Government to have set up a banking royal commission two years ago.
Mr Turnbull and his senior colleagues have spent the past two years arguing against holding a royal commission into the financial sector, although some of his backbenchers were campaigning vigorously for a royal commission to be held.
Mr Turnbull finally called a royal commission late last year and the public have been shocked by the emerging evidence.
AMP, which has a large presence in New Zealand, apologised after admitting to charging customers for advice they never received and repeatedly lying to the corporate regulator.
The Banking Royal Commission held its first round of public hearings from March 13 to 23, focusing on the lending practices of NAB, Aussie Home Loans, Commonwealth Bank of Australia, ANZ, Westpac, St George and Citibank.
The second round started on April 17 and finishes today. AMP, Commonwealth Bank, ANZ, Westpac, NAB and their financial planning arms have been getting a grilling.
The Australian Government is conceding the commission may need to be extended for another year, meaning it is probably likely it has only scratched the surface of misconduct in the Australian banking system. Last month, the major banks were also criticised for controversial consumer lending practices which spanned mortgages, car finance, credit cards and insurance products.
A third hearing on lending to small business and the agricultural sector is due next month.
Judge Kenneth Hayne is due to produce an interim report on the inquiry by September which may have major implications for New Zealand.
The New Zealand Financial Markets Authority says it is watching the developments closely and is in contact with the Australian regulator, ASIC.
Prime Minister Jacinda Ardern has not ruled out launching an inquiry into the New Zealand banking system. But so far, the Government is just keeping a close eye on the Australian commission's investigations.
Usually, the suggestion of another government inquiry in New Zealand will be met with a glazed expression. However, in this case New Zealanders need assurance their banks are doing the right thing by their customers.
Banks are actively pursuing investments through KiwiSaver, their own insurance products and convincing their customers to move money back to the bank, despite interest rates being appallingly low for those older people seeking income.
Banks need to meet targets and pressure goes on to staff to meet those targets, sometimes through a hard-sell approach.
As so many of New Zealand's financial institutions have an Australian owner, reassurance through either the FMA or the Government will be welcome.
