14 November 2018
There are no excuses for the behaviour that has been exposed by the Royal Commission.
We as Australia’s banks accept full responsibility for these failures and right now are working to make
this right for customers who have been hurt. The ABA thanks all those customers who have come
forward to give evidence along with Commissioner Hayne and his team for the comprehensive
examination of the issues.
It is clear throughout the report, and the hearings, that there were several themes of unacceptable
behaviour. These include a focus on sales rather than service, poor culture and the way staff and third
parties were paid.
The ABA welcomes further clarity on the capital treatment for guarantees under the Scheme. A clear understanding of the capital treatment is critical for an ADI’s mortgage product development and consequential approval under the scheme.
The ABA welcomes any assistance to help first homebuyers to own their own home and supports the Government’s commitment to deliver the First Home Loan Deposit Scheme. Further, the ABA welcomes APRA’s letter to industry clarifying the capital treatment of the guarantee.
The ABA fully supports the removal of the exemption for funeral expenses policies from the defintion of financial products.