Weekly Update: 21st July 2023

“With most scams starting with a SMS or phone call, this approach highlights why we need telcos to take down these scam numbers so they can’t be used to trick more consumers.” 

– ABA Deputy CEO Vanessa Beggs on the launch of ‘Call Stop’ by Optus

---

Parliamentary Update:

• Treasurer Jim Chalmers released the Measuring What Matters report this morning that includes a new ‘wellbeing framework’ with 50 indicators, outlined here 
• Treasurer Jim Chalmers released the Measuring What Matters report this morning that includes a new ‘wellbeing framework’ with 50 indicators, Assistant Treasurer Stephen Jones joined with Member for Calare Andrew Gee, to announce a parliamentary inquiry into insurers’ response to the 2022 floods. The announcement followed visits from the Assistant Treasurer to the flood‑affected towns of Molong, Eugowra, and Cudal. 
• Employment Minister Tony Burke held a press conference following June unemployment figures being released by the ABS.  
• Assistant Minister Andrew Leigh authored an opinion piece in The Australian on how a lack of competition may impede the transmission of monetary policy.  
• Climate Change Minister Chris Bowen announced plans to develop six sectoral plans to help reach Australia’s net zero 2050 goals. 
• Treasurer Jim Chalmers travelled to India to meet with international counterparts as part of the G20 Finance Ministers and Central Bank Governors meetings in Gandhinagar. Discussions focused on how nations are continuing to grapple with the challenges of high inflation and slowing global growth.

---

Policy Update:

The ABA: 

• attended the first Advisory Board meeting of the Federal Government’s National Anti-Scam Centre. The meeting was opened by Assistant Treasurer Stephen Jones who reiterated the importance of the ecosystem approach to fighting scams. 
• attended a roundtable discussion hosted by the Department of Industry, Science and Resources (DISR) about safe and responsible use of artificial intelligence. This roundtable is part of DISR’s consultation on this issue.  
• attended Treasury’s Delivering Better Financial Outcomes: Government Response to the Quality of Advice Review roundtable. This roundtable focused on recommendations that were adopted in principle as part of stream one of the Government response. At the session, the ABA pushed to ensure that government maintains exemptions that allow banks to provide simple advice to customers on items like basic banking products. 
• participated in a two-day industry and government forum on the development of the Nationwide House Energy Ratings Scheme and Residential Energy Efficiency Disclosure Initiative frameworks. A broad range of representatives attended from across the property, finance and housing sectors. 

---

Regulatory Update:

• APRA announced that it and ASIC have commenced early consultations on the implementation of Financial Accountability Regime (FAR). Read more here. APRA will also be running webinars on this topic and we will keep you updated when dates for these are released. 
• APRA finalised its new prudential standard on operational risk that aims to help ensure banks, insurers and superannuation trustees can better manage operational risks and respond to business disruptions. 
• ASIC has cancelled the Australian financial services (AFS) licence held by FTX Australia Pty Ltd (FTX Australia), effective from 14 July 2023. 
• The ACCC published draft guidance to improve the integrity of environmental and sustainability claims made by businesses and protect consumers from ‘greenwashing’. 

---

Economic Update:

• The unemployment rate remained at 3.5% in June. The number of employed people in Australia is 14 million and the participation rate remained at 66.8%. Underemployment increased to 6.4%.
• While mortgage arrears have picked up over the last six months, at 1.00 per cent they remain at around two-thirds of the levels they were when we entered COVID in early 2020.
  • As at May 31, 31-60 day arrears were 0.35 per cent of the pool of mortgage backed securities, 31-60 days were 0.17 per cent and 90+ days were 0.48 per cent.
  • In recent months growth in 31-60 day arrears and 61-90 day arrears has tapered off. Some of this will be due to some loans moving into the next 90+ day category (i.e. becoming non-performing loans).

---

Communications and Media:

• The ABA welcomed the announcement from Optus to launch ‘Call Stop’, an automated technology to help protect its customers from SMS scams. Acting on intelligence provided by banks to the Australian Financial Crimes Exchange (AFCX), an independent body built and funded by Australian banks, this will help to stamp out ‘call back scams’ where customers call a fraudulent number when prompted by a scam SMS or email. Read the full statement here.  
• To encourage the quick reporting of all cyber incidents, cybercrimes and vulnerabilities – and help prevent future cyber incidents and attacks – the Australian Signals Directorate’s Australian Cyber Security Centre (ACSC) has launched the ‘Report and Recover’ campaign. ABA shared the news about this campaign to our LinkedIn channel here.  

---

Upcoming Events:

• The Australian Banking Association (ABA) in partnership with Chartered Accountants ANZ and Deloitte hope that you are able to join the upcoming face to face Climate & Sustainability Event to be held jointly at the Deloitte offices in Sydney and Melbourne on Friday 28 July 2023.
• To register, please click here
• This event is targeted towards our member banks senior professionals.

---

Upcoming Submissions:

Published submissions

---

Selected Media:

• AFR – Binance in the crosshairs as NAB bans ‘high-risk’ crypto exchanges 
• The Australian – CBA moves to reconfirm customer data and identities in a money laundering crackdown  
• AFR – Deposit inquiry could have ‘devastating effects on the economy’  
• AFR – APRA demands boards improve oversight of cyber risks.  

Weekly Update