BANKS AND BANKING – AUSTRALIA – REGULATION

Attestation: a word to make bankers tremble

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Original article by James Eyers
The Australian Financial Review – Page: 16 : 23-Feb-15

The Financial Conduct Authority in the UK is increasingly using so-called attestations to make bank executives and managers personally accountable for misconduct within the financial institution. Jonny Gordon of law firm Ashurst suggests that the Australian Securities & Investments Commission could also eventually begin using attestations

CORPORATES
GREAT BRITAIN. FINANCIAL CONDUCT AUTHORITY, ASHURST AUSTRALIA, ASHURST LLP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC

Nation needs strong banks, Murray says

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Original article by Michael Bennet
The Australian – Page: 22 : 9-Dec-14

Among the recommendations made in the financial system review report by David Murray for the Australian Government is lifting the capital requirements for the main banks. Murray says the sector needs to be strong enough to withstand another financial crisis, and at the same time cannot rely on being saved by the Government. Estimates of the additional funds likely to be needed if the measures are adopted range from $A8bn to $A32bn. Investors on 8 December 2014 were unconcerned, with the share prices of the four major banks all rising

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, BANK OF QUEENSLAND LIMITED – ASX BOQ, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, DEUTSCHE BANK AG, MERRILL LYNCH (AUSTRALIA) PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, ARGO INVESTMENTS LIMITED – ASX ARG, MACQUARIE BANK LIMITED – ASX MBL, UBS HOLDINGS PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN BANKERS’ ASSOCIATION

Majors facing $20bn squeeze

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Original article by Michael Bennet
The Australian – Page: 17 : 8-Dec-14

Among the recommendations made in the financial system review report by David Murray for the Australian Government is that the four main banks should significantly increase their reserve capital holdings. They are also urged to lift the risk weighting on home mortgage loans to a range of 25% to 30%. Analysts calculate that if adopted the new requirements will create an additional cost burden of $A20bn per annum for the sector. Australian Bankers’ Association CEO Steven Munchenberg has vowed to persist with its lobbying effort against the proposals and those of the Australian Prudential Regulation Authority

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN BANKERS’ ASSOCIATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, WATERMARK FUNDS MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, THE BOSTON CONSULTING GROUP PTY LTD

Medcraft warns of collusion probes

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Original article by Leo Shanahan
The Australian – Page: 23 : 27-Nov-14

Civil as well as criminal charges are possible against ANZ Bank, over its role in alleged attempts by major banks to fix the bank bill swap rate. The Australian Securities & Investments Commission (ASIC) is investigating, and ANZ has suspended seven traders on full pay pending the outcome. ASIC chair Greg Medcraft argues that the problem is a global one and indicative of an ingrained culture across the banking sector. A probe into the claims of collusion has also been launched by the Australian Competition & Consumer Commission

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, HARVARD UNIVERSITY, BLOOMBERG LP

Traders benched in rates fix probe

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Original article by Richard Gluyas
The Australian – Page: 1 : 20-Nov-14

The Australian Securities & Investments Commission (ASIC) is continuing its investigation of banks and investment banks that allegedly colluded to manipulate the bank bill swap rate via the Australian Financial Markets Association. BNP Paribas, UBS and Royal Bank of Scotland have already incurred penalties, and ANZ Banking has now stood aside seven market trading staff on full pay due to the ASIC inquiry. ANZ chief risk officer Nigel Williams says the bank is co-operating fully with the watchdog

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN FINANCIAL MARKETS ASSOCIATION INCORPORATED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, UBS AG, ROYAL BANK OF SCOTLAND GROUP PLC, BNP PARIBAS SA

APRA rules to hit banks’ funding costs

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Original article by Michael Bennet
The Australian – Page: 21 : 5-Nov-14

The Australian Prudential Regulation Authority on 4 November 2014 announced the details for the liquidity coverage ratio (LCR) under the Basel III reforms, which will take effect from 1 January 2015. To meet the LCR requirements, Australian banks can seek committed liquidity facilities from the Reserve Bank, and the fee for this has now been set at 15 basis points. This equates to some $A400m for the four main banks combined. The sector had strongly lobbied against such an impost, in the submissions to the Federal Government’s financial system inquiry

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED

Suncorp urges inquiry to level the playing field

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Original article by Clancy Yeates
The Australian Financial Review – Page: 27 : 30-Oct-14

Suncorp CEO Patrick Snowball believes that the Federal Government’s financial system inquiry focuses excessively on the stability of Australia’s banking system while paying little attention to competition in the sector. He said on 29 October 2014 that smaller banks are disadvantaged by the current regulations. Snowball also spoke against allowing foreign insurers to sell policies in north Queensland

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, WESTPAC BANKING CORPORATION – ASX WBC, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC

Stevens slams bank holdouts

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Original article by Richard Gluyas
The Australian – Page: 21 : 24-Oct-14

A new payments platform enabling real-time processing of transactions is supposed to be rolled out with the help of the Australian banking sector by late 2016. However Westpac Banking and others have not yet approved the incorporation of a joint venture for the project, drawing sharp criticism from Reserve Bank of Australia governor Glenn Stevens. He told the 2014 congress of the Australian Payments Clearing Association that the central bank "would be duty-bound to consider a regulatory ­approach" if no progress can be achieved

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PAYMENTS CLEARING ASSOCIATION LIMITED, MORTGAGE CHOICE LIMITED – ASX MOC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Murray debate off course: Maxsted

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Original article by Richard Gluyas
The Australian – Page: 19 : 10-Oct-14

The financial system review conducted by David Murray for the Australian Government is widely expected to recommend stricter capital requirements for the banking sector, in line with global regulation efforts. However Lindsay Maxsted, chair of Westpac Banking, argues that this would be short-sighted and neglect to take into account the important role banks play in financially supporting businesses and the economy. Leading staff from the four major lenders have held talks with Murray on the issue

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, TRANSURBAN GROUP LIMITED – ASX TCL, GROUP OF TWENTY (G-20)

Leave capital levels alone ANZ chief tells Murray

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 18 : 3-Oct-14

The final report of the inquiry into Australia’s financial system is widely tipped to include recommendations on changes to capital requirements in the banking sector. ANZ Bank CEO Mike Smith argues that the inquiry should not outline any specific capital levels, noting that the Australian Prudential Regulation Authority can already direct banks to hold a certain level of capital. Smith has also downplayed concerns about banks’ high exposure to mortgage loans

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, FINANCIAL STABILITY BOARD