The bosses of some of Australia’s biggest banks have backed calls for longer election cycles, saying it would provide stability for businesses and improve policymaking as the country battles a slowing economy.

At the Australian Financial Review’s banking summit in Sydney on Tuesday, Westpac chief executive Peter King said four-year election cycles for federal government, instead of the existing three-year terms, would give businesses more certainty and help to drive growth.

“Three years is too short,” he said. “Businesses operate best when they know the rules, they know the requirements, and they don’t change. Long-term policy that doesn’t move around is critical.”

King said it was especially important to have continuity in government for longer-term decisions and investments. “Some of the long-term investments we’ve got in the energy transition and infrastructure are critical, and we need to continue on those,” he said.

In February, Prime Minister Anthony Albanese reiterated his support for four-year terms in federal politics, with Opposition Leader Peter Dutton backing the prime minister’s view earlier this month.

Albanese said four-year terms were “common sense”, and while Dutton said he was prepared to discuss a strategy with the prime minister he noted it would be tough to sell to voters as the change would require a referendum.

It comes as Australia’s economic growth slowed to 0.2 per cent in the final three months of last year, and business leaders and politicians look for ways to improve productivity and economic growth.

The country’s GDP growth expected to slow from 3.1 per cent over the past 40 years to roughly 2.2 per cent over the next 40 years according to Treasury’s intergenerational report.