GOVERNMENTAL INVESTIGATIONS – AUSTRALIA

CBA, NAB chairmen to face Hayne heat

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Original article by Richard Gluyas
The Australian – Page: 23 : 14-Nov-18

Commonwealth Bank of Australia chair Catherine Livingstone will appear before the financial services royal commission on 19 November. National Australia Bank chairman Ken Henry is expected to front the inquiry in the following week. The CEOs of the four major banks will also give evidence during the final round of public hearings, along with Macquarie Group’s Nicholas Moore, AMP’s Mike Wilkins and the heads of ASIC and APRA. CBA and NAB attracted criticism in the royal commission’s interim report.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Banks pledge to lend but with caveats

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 12-Nov-18

Australia’s major banks have urged the financial services royal commission not to over-regulate the way in which they assess corporate borrowers. The banks state that this would make it harder to increase their lending to small and medium enterprises. Their urgings have come as federal Treasurer Josh Frydenberg called upon the banks to "keep open the books", while National Australia Bank executive Anthony Healy says the bank is more willing to lend to SMEs without proper security.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC

Decade of banking’s dirty laundry aired

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Original article by James Frost
The Australian Financial Review – Page: 10 : 8-Nov-18

The financial services royal commission has released more than 200 documents that were submitted by banks in response to a request by the inquiry’s head Kenneth Hayne in late 2017. The documents highlight the wide range of incidents of misconduct that have occured in the sector over the last 10 years, including fraud, theft, money-laundering, the falsification of loan documents and breach of privacy laws.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSSIE HOME LOANS LIMITED

Chairmen in hot seat at commission

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Original article by Richard Gluyas
The Australian – Page: 19 & 22 : 31-Oct-18

Remuneration in the banking sector will come under scrutiny during the financial services royal commission’s final round of public hearings, which commences on 19 November. There is also speculation that the chairs of some, if not all, of Australia’s four major banks will be asked to appear before the inquiry. The banks’ self-­assessments of their governance and culture are also expected to be on the royal commission’s agenda.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Bank CEOs to face off with fired-up MPs

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Original article by James Frost
The Australian Financial Review – Page: 17 : 11-Oct-18

Liberal MP Tim Wilson, who chairs federal parliament’s standing committee on economics, says bank CEOs can expect to face a grilling when they front the committee in coming days. He says that amongst other things, the committee will be demanding information on how the major banks intend to address governance concerns and compensate customers for misconduct. Commonwealth Bank CEO Matt Comyn and Westpac CEO Brian Hartzer will appear before the committee on 11 October.

CORPORATES
AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, LIBERAL PARTY OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIAN BANKING ASSOCIATION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN GREENS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Trust gap will crank up bank funding costs

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 17 & 20 : 4-Oct-18

Fitch Ratings has warned that a loss of trust in Australian banks in the wake of the financial services royal commission may result in higher wholesale funding costs. Fitch adds that banks may find it hard to pass the increased costs on to borrowers in the current climate. The credit ratings agency also notes that banks could potentially face increased compliance costs and a greater risk of class actions as a result of any recommendations made by the inquiry in its final report. Fitch has retained its negative outlook on banks.

CORPORATES
FITCH RATINGS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, S&P GLOBAL RATINGS, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CLSA AUSTRALIA PTY LTD

Hayne to lift lid on bank confessions

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Original article by Richard Gluyas
The Australian – Page: 19 & 23 : 3-Oct-18

The financial services royal commission has selectively released information on the admissions of misconduct by the major banks. Commissioner Kenneth Hayne requested the information in early 2018, and a spokesman for the inquiry has downplayed suggestions that it may shortly release the banks’ full submissions. Industry sources have indicated that the potential for class actions against the banks will increase if the so-called "confession statements" are fully disclosed.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AMP LIMITED – ASX AMP, CLAYTON UTZ, FEDERAL COURT OF AUSTRALIA

Risk of credit crunch is real and rising, UBS warns

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Original article by James Frost
The Australian Financial Review – Page: 16 : 2-Oct-18

Jonathan Mott of UBS has told clients that Australian banks’ profits are likely to come under pressure in the next several years as a result of the financial services royal commission. He says the risk of a credit crunch has been heightened following the release of the inquiry’s interim report. Mott adds that amongst other things, the final report is likely to recommend extending responsible lending obligations to small and medium enterprises and an overhaul of the way banks verify the expenses of borrowers.

CORPORATES
UBS HOLDINGS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Banking code of conduct needs more bite

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Original article by James Eyers
The Australian Financial Review – Page: 16 : 2-Oct-18

The banking royal commission’s interim report urged the Australian Securities & Investments Commission to be aggressive in enforcing the Banking Code of Conduct. Australian Small Business & Family Enterprise Ombudsman Kate Carnell has backed the commission’s call for ASIC to be more proactive in enforcing the Banking Code of Conduct, while she has suggested that many small businesses will be disappointed by the commission’s interim report.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BANKWEST, AUSTRALIAN BANKERS’ ASSOCIATION

Reality check on the big stick

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Original article by John Kehoe, James Eyers, Sarah Turner, William McInnes, James Frost
The Australian Financial Review – Page: 1 & 6 : 1-Oct-18

Prime Minister Scott Morrison says the interim report of the financial services royal commission has highlighted areas of concern that the federal government has been taking action to address in the last few years. Treasurer Josh Frydenberg adds that the report demonstrates the need for the financial services industry to improve its standards and accountability. However, he has warned against responding to the findings of the inquiry with onerous regulation that could adversely affect access to credit or undermine economic growth.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CAPITAL ECONOMICS LIMITED, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB