BANKS AND BANKING – AUSTRALIA – REGULATION

Lib MP growls over layer of BEAR red tape

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 6-Feb-18

The Greens will seek amendments to the Federal Government’s Banking Executive Accountability Regime in the Senate, after the legislation was passed by the lower house on 5 February. Liberal MP Nicolle Flint opposed the BEAR regime, arguing that it will further increase the compliance burden for the financial sector, noting that it has been subject to a spate of new rules and regulations in recent years. The BEAR regime, which is slated to take effect in July, has the support of the Australian Labor Party.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

Carnell: banking inquiry should pass the pub test

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Original article by James Frost
The Australian Financial Review – Page: 15 : 24-Jan-18

Complaints about loans to small business and farmers are among those on which the banking royal commission will accept submissions, according to information released on 23 January. Kate Carnell, the small business and family enterprise ombudsman, previously headed an inquiry into small business loans in 2016. She says the banking royal commission must ensure that all interested parties are given the opportunity to make a submission.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN

Mortgage brokers added to banking inquiry purview

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Original article by James Frost
The Australian Financial Review – Page: 17 : 20-Dec-17

Commissioner Kenneth Hayne has broadened the banking royal commission’s terms of reference to include the $A344 billion mortgage broking sector. Many had been surprised that the sector was not included in the royal commission’s original terms of reference, given that over 50 per cent of all mortgages are generated via mortgage brokers. Mortgage & Finance Association of Australia CEO Mike Felton contends that the sector’s professional standards are improving, while he notes that it has been the subject of two major reviews in the last 18 months.

CORPORATES
MORTGAGE AND FINANCE ASSOCIATION OF AUSTRALIA, MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIA. DEPT OF THE TREASURY

Analysts ease fears over Basel

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Original article by Richard Gluyas
The Australian – Page: 21 : 12-Dec-17

Australian Prudential Regulation Authority chairman Wayne Byers has welcomed finalisation of the Basel IV reforms governing the global capital requirements for banks. He says Australian banks are in a good position to meet the Basel IV reforms, a comment echoed by Victor German of Macquarie. Craig Williams of Citigroup says the reforms have a longer implementation time (2027) than was expected, while they are not as onerous as had been forecast.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, MACQUARIE GROUP LIMITED – ASX MQG, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD

Bank probe hits union super

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Original article by Phillip Coorey, James Eyers
The Australian Financial Review – Page: 1 & 6 : 1-Dec-17

The federal government announced on 30 November that it would hold a royal commission into the financial services sector. The royal commission will cost $A75 million and run for 12 months. Its terms of reference are not as broad as the private members’ bill that Nationals Senator Barry O’Sullivan was looking to introduce and which was seen a major factor in Prime Minister Malcolm Turnbull and Treasurer Scott Morrison’s decision to hold a royal commission. The government’s decision to include an examination of union-backed industry superannuation funds as part of the commission’s terms of reference is seen as "payback" to Labor for its part in forcing the government to change its mind on the issue.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN GREENS, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, JCP INVESTMENT PARTNERS LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIAN BANKERS’ ASSOCIATION, WESFARMERS LIMITED – ASX WES, BANK OF QUEENSLAND LIMITED – ASX BOQ, FINANCE SECTOR UNION

Malcolm Turnbull under pressure to allow bank probe

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Original article by Phillip Coorey
The Australian Financial Review – Page: Online : 28-Nov-17

Nationals MP Llew O’Brien has indicated he is prepared to cross the floor of the House of Representatives to support a private members’ bill to establish a commission of inquiry into the banking sector. Nationals MP George Christensen has already indicated he cross the floor to support the bill in the lower house. The bill has been instigated by Nationals senator Barry O’Sullivan, and already has enough support to pass through the upper house. O’Sullivan says the federal government should perhaps take control of the process to get the bill enacted, given the current state of the numbers.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ONE NATION PARTY, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, KATTER’S AUSTRALIAN PARTY, AUSTRALIA. DEPT OF THE TREASURY

Nats push much wider bank probe

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 7 : 24-Nov-17

Nationals senator Barry O’Sullivan released on 23 November details of his private members’ bill that calls for a commission of inquiry into the banking sector. Its release comes as efforts to have its tabling thwarted intensify. Former prime minister John Howard described the bill as "rank socialism", while Treasurer Scott Morrison met with the chairman of the big four banks, suggesting the need for them to come up with reforms that might reduce the impetus for an inquiry.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, SKY NEWS, LIBERAL PARTY OF AUSTRALIA

RBA governor Philip Lowe says banks needed push on interest-only lending

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Original article by Vesna Poljak
The Australian Financial Review – Page: Online : 22-Nov-17

Reserve Bank of Australia governor Philip Lowe says there is still a place for interest-only mortgage lending, but he believes the recent regulatory crackdown in this area has been a success. Speaking at the Australian Business Economists dinner on 21 November, Lowe said some banks had told him that they had welcomed the crackdown, which had prompted him to ask why they had not taken the initiative themselves and done something about it. Commenting on the prospects for the Australian economy, Lowe expects growth of above three per cent in both 2018 and 2019.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUSINESS ECONOMISTS INCORPORATED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. COUNCIL OF FINANCIAL REGULATORS

Bank inquiry bad for business: Bligh

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Original article by Michael Roddan
The Australian – Page: 4 : 21-Nov-17

Australian Bankers’ Association CEO Anna Bligh says a royal commission into the banking sector could hurt the reputation of Australian banks overseas. Her comments come as the prospect of a royal commission or a commission of inquiry into the banking sector grows increasing likely. A spokesperson for the National Australia Bank said it did not think either type of commission was needed, contending that the banking sector is both well regulated and well governed.

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLSA AUSTRALIA PTY LTD, NATIONAL PARTY OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN GREENS

Westpac takes on ASIC alone over rate rigging

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Original article by James Frost, Patrick Durkin
The Australian Financial Review – Page: 1 & 6 : 31-Oct-17

Westpac has elected to let the courts decide whether allegations of rigging the bank bill swap rate have any foundation. National Australia Bank and the ANZ, which were also alleged by the Australian Securities & Investments Commission of rigging the BBSW, have agreed to a settlement over the issue. The case against Westpac will begin in the Federal Court on 31 October, with the case likely to run until the end of the year.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA