7 July 2016
Sydney 7 July, 2016: The Australian Bankers’ Association has today released details of the independent review of the Code of Banking Practice, which sets standards of good conduct for banks.
“The Code of Banking Practice (the Code) is important in helping individual and small business customers understand how they can expect to be treated by their bank,” ABA Chief Executive Steven Münchenberg said.
“The independent review will determine if the Code continues to serve customers’ interests and it will make recommendations on how it could be improved,” he said.
Following consultation with stakeholders and banks, Mr Phil Khoury, Managing Director of Cameron Ralph Pty Ltd, has been appointed to conduct the review of the Code.
Mr Khoury will consult with banks, consumer and small business organisations, the Finance Sector Union and employees of banks, regulators and other stakeholders.
The public is also invited to make submissions on any of the matters in the Terms of Reference. Submissions can be sent to [email protected] and are requested by 19 August 2016.
Mr Khoury will also conduct a review of the activities of the Code Compliance Monitoring Committee, the independent compliance monitoring body established under the Code.
More information on the independent review, including the Terms of Reference, is available at cobpreview.crkhoury.com.au.
In April this year the ABA announced a review of the Code as part of major industry initiatives to build trust and confidence in banks.
Mr Ian McPhee AO PSM is independently overseeing the industry initiatives, including this review.
The Code sets standards of good banking practice when dealing with individual and small business customers and their guarantors. The Code covers obligations for banks in areas including the offer of banking services, information and disclosure, complaints handling, customers with special needs and customers experiencing financial difficulty.
Banks that adopt the Code must reflect this in their contracts with their individual and small business customers and are therefore contractually bound by their obligations.
More information on the Code, including FAQ’s, is available on the ABA website.
Contact: Stephanie Arena 0477 470 677 or Nic Frankham 0435 963 913
“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.”