29 February 2020
Changes to the Banking Code of Practice as recommended by the Royal Commission will go live tomorrow.
The changes coming into effect, as recommended by Commissioner Hayne in his Final Report, include:
- Ceasing default interest on agricultural loans while farms are affected by drought or natural disaster
- Ensuring services to people with limited English and those living in remote areas are inclusive and accessible
- Removing overdraft and dishonour fees on basic, low fee or no fee accounts for concession card holders
- Guaranteed features for basic bank accounts.
“The banking industry has been working hard to implement the recommendations of Commissioner Hayne’s final report, which included important changes to the Banking Code of Practice”Anna Bligh, ABA CEO
In addition to the Royal Commission recommendations, the industry has also guaranteed features for basic bank accounts.
Australian Banking Association CEO Anna Bligh said the industry has fulfilled its commitment to bolstering its Banking Code of Practice by implementing Commissioner Hayne’s recommendations.
“The banking industry has been working hard to implement the recommendations of Commissioner Hayne’s final report, which included important changes to the Banking Code of Practice,” Ms Bligh said.
“Initiatives such as guaranteed features for basic bank accounts across the industry and ensuring inclusive and accessible services for people with limited English or who live in a remote area address specific issues raised by Commissioner Hayne is his final report.
“These changes come into full effect from tomorrow and will form part of the promises made to customers through the industry’s Banking Code of Practice.
“These changes to the Code are in addition to a number of actions already taken by banks as a direct result of the Royal Commission, including ending fees for no service and a remediation bill topping $5.8 billion in the 12 months since the final report,” she said.
Contact: Rory Grant 0475 741 007
“The Australian Banking Association (ABA) welcomes the agreement reached today on the proposed safeguard mechanism reforms, given it paves the way for the passing of a critical piece of legislation for Australia.
“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”
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