Executives at the major banks must be held publicly accountable for any regulatory breach in any of their divisions, according to a parliamentary committee... ABA responds to parliamentary report...
Aussie lawmakers push banks for accountability over breaches
(Bloomberg) -- Executives at Australia’s biggest banks must be held publicly accountable for any regulatory breach in any of their divisions, according to a parliamentary committee investigating the conduct of the lenders after a series of scandals.
From July next year, the banks should be required to report publicly the nature of any breach and the names of senior executives responsible for the teams where the breach occurred, according to a report from the House of Representatives Standing Committee on Economics released Thursday. The lenders should also reveal “consequences” for those executives and, if they weren’t fired, why termination was not pursued, it said.
The recommendations come after the heads of Commonwealth Bank of Australia and its three largest rivals were called before the committee last month by Prime Minister Malcolm Turnbull amid rising public disquiet over record profits, the failure of the lenders to pass on recent interest-rate cuts in full and a series of consumer scandals.
“The major banks have a ‘poor compliance culture’ and have repeatedly failed to protect the interests of consumers,” the lawmakers said. “This is a culture that senior executives have created. It is a culture that they need to be held accountable for.”
ABA responds to parliamentary report
The Australian Bankers’ Association CEO Steven Münchenberg has said “consumers are demanding action now, and we are responding,” following yesterday’s House of Representatives Standing Committee on Economics’ report from its inquiry into the four major banks.
“The industry is making major changes that address concerns about how bank staff are rewarded, the protection of whistleblowers, the handling of customer complaints and dealing with poor conduct. We are doing this with independent oversight,” said Münchenberg.
“Further reforms are being introduced by the Federal Government, including higher standards for financial advisers and greater powers and resourcing for ASIC. We support these changes.
“Many of the committee’s recommendations build upon reforms already underway to make banking better for all Australians.
“Banks are improving the way they handle customer complaints by appointing dedicated customer advocates to ensure complaints are appropriately escalated and responded to within specified timeframes.
“If customers are not satisfied with how their bank handles a complaint, we agree it should be easier to get help externally. The ABA supports having a one-stop-shop to handle disputes or direct people where to go.”
(Bloomberg) -- Executives at Australia’s biggest banks must be held publicly accountable for any regulatory breach in any of their divisions, according to a parliamentary committee investigating the conduct of the lenders after a series of scandals.
From July next year, the banks should be required to report publicly the nature of any breach and the names of senior executives responsible for the teams where the breach occurred, according to a report from the House of Representatives Standing Committee on Economics released Thursday. The lenders should also reveal “consequences” for those executives and, if they weren’t fired, why termination was not pursued, it said.
The recommendations come after the heads of Commonwealth Bank of Australia and its three largest rivals were called before the committee last month by Prime Minister Malcolm Turnbull amid rising public disquiet over record profits, the failure of the lenders to pass on recent interest-rate cuts in full and a series of consumer scandals.
“The major banks have a ‘poor compliance culture’ and have repeatedly failed to protect the interests of consumers,” the lawmakers said. “This is a culture that senior executives have created. It is a culture that they need to be held accountable for.”
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ABA responds to parliamentary report
The Australian Bankers’ Association CEO Steven Münchenberg has said “consumers are demanding action now, and we are responding,” following yesterday’s House of Representatives Standing Committee on Economics’ report from its inquiry into the four major banks.
“The industry is making major changes that address concerns about how bank staff are rewarded, the protection of whistleblowers, the handling of customer complaints and dealing with poor conduct. We are doing this with independent oversight,” said Münchenberg.
“Further reforms are being introduced by the Federal Government, including higher standards for financial advisers and greater powers and resourcing for ASIC. We support these changes.
“Many of the committee’s recommendations build upon reforms already underway to make banking better for all Australians.
“Banks are improving the way they handle customer complaints by appointing dedicated customer advocates to ensure complaints are appropriately escalated and responded to within specified timeframes.
“If customers are not satisfied with how their bank handles a complaint, we agree it should be easier to get help externally. The ABA supports having a one-stop-shop to handle disputes or direct people where to go.”
