3 October 2019
Banks welcome today’s release of the Sylvan Review, which charts a path forward to strengthen Australia’s financial counselling sector.
The Review highlights the importance of financial counsellors in helping Australians who are struggling to repay their debts, manage their household budgets and provide for their families in a difficult environment.
Banks actively participated in the review and are pleased to see the Report has reinforced a number of important issues identified by banks in their submission such as better coordination of resources across the sector, a central body to allocate funding and long-term funding certainty for financial counselling, including a long term, data driven funding model.
CEO of the Australian Banking Association Anna Bligh said that financial counsellors were important to Australians and the banking industry who see them as valuable partners in helping vulnerable customers.
“Financial counsellors get people back on track when they’re experiencing some of the most difficult moments in their lives and provide a valuable education service to people with lower levels of financial literacy and capability,” Ms Bligh said.
“This review charts an important path forward to strengthen Australia’s financial counselling sector.
“Certainty of funding for financial counsellors is a top priority and the industry will work with the government to finalise a model as quickly as possible to appropriately fund the sector.
“As outlined in their submission to this review, banks support industry funding sourced from both the financial sector and other industries that may contribute to financial hardship,” she said.
Contact: Rory Grant 0475 741 007
“Australian banks are certainly better equipped now than they were in the GFC. They’ve got 2 to 2.5 times the capital reserves put aside for a rainy day than they had in the GFC”
“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.”