Weekly Update: 12 July 2024

Highlights this week:

• Announcement: The ABA highlighted across our digital channels a new fact sheet to help banks verify the identify of First Nations people when accessing banking services. 
• In the media: The ABA contributed to an article on interoperability in the Fin.
• Key data: May lending indicators showed a 1.7% fall in total lending for housing compared to April.

Quote of the week:
“Banks are working on how best to design their products and services with a safety by design lens. This must be done with a measured approach and informed by consultation with advocacy groups and victim-survivors, because as our world continues to digitise and evolve – so too does the nature of abuse.”

– ABA CEO Anna Bligh, speaking at the Parliamentary Joint Committee into Financial Services Regulatory Framework in Relation to Financial Abuse, 8 July 2024 

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Media & Communications Update:

• The ABA provided a response for a Channel 9 story on banking services and Australia Post. 
• The ABA also responded to a number of queries about scams and calls for a UK style bank reimbursement scheme. The ABA noted the lower reduction in scam losses in the UK (4%) compared to Australia (13%), and that Australia’s focus is stopping people being scammed in the first place.  

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Policy Update:

• ABA has highlighted its acceptance of first nations community identification cards factsheet. 
• ABA CEO met with:
  • Minister for Communications Michelle Rowland on scams and other issues  
  • Minister for Financial Services Stephen Jones office on the Consumer Data Right  
  • Attorney-General Mark Dreyfus on AML/CTF Rules and privacy.
• Additionally, ABA Policy Teams:
  • attended APRA’s roundtable on the new Prudential Handbook 
  • met with ISDA regarding scope and timelines for APRA’s Fundamental Review of the Trading Book 
  • met with NSW Department of Customer Service regarding IOP government’s next steps.

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Regulatory Update:

• The ACCC issued a media release highlighting the increase in criminals targeting previous scam victims promising financial recovery.
• RBA’s Michele Bullock, Governor, gave a speech at the Pacific Banking Forum 2024 Dinner.  
• ASIC released its estimated industry funding levies for 2023-24. 
• APRA issued a letter to ADIs finalising the revisions to its framework for Interest Rate Risk in the Banking Book (IRRBB) requirements. 
• APRA and ASIC published the final rules and information for the financial accountability regime.

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Parliamentary Update:

• ABA CEO Anna Bligh, and ABA Head of Customer Policy Amanda Pullinger appeared before the PJC on Corporations and Financial Services inquiry into Financial Services Framework in Relation to Financial Abuse. Bendigo and Adelaide Bank, NAB, CBA and Westpac also appeared before the Committee.  
• The Treasurer and other Ministers announced further investment for added stability of banking services in the Pacific. This was followed by an address to the Pacific Banking Forum in Brisbane. Assistant Minister Jones delivered an additional address.   
• The Attorney-General announced two national risk assessments, revealing the scale, and threat of money laundering and terrorism financing in Australia, and highlighted the Government’s proposed reforms to AML/CTF. This was followed by a speech at the National Press Club.  
• The Attorney-General announced reforms to Australia’s bankruptcy system.  
• The NASC released a statement warning customers of scam risks.  
• The Deputy Prime Minister and Minister for Defence, Richard Marles attended the 2024 NATO Summit in Washington DC. 
• The Parliamentary Joint Select Committee on Social Media and Australian Society held another public hearing.  

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Economic Update:

• The ABS released the May lending indicators which showed a 1.7% fall in lending for housing compared to April to $28.8 billion. 
• The ABS released updated underemployment data highlighting an underemployment ratio of 11.6%. This equates to 1.7 million people, of which 328,00 people had their hours reduced due to economic reasons and 1,492,000 people preferred more hours, with 1 million of those people currently working part time. 

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Coming up next week:

Parliament/Regulators:  

• Parliament is still on their winter break, returning 12 August.  
• 18/7 – RBA Bulletin 

Data announcements:  

• 18/7 – ABS Labour Force, Australia 

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Upcoming Submissions:

Published submissions

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Selected Media:

• AFR – Could this be the country’s stupidest public policymaking debacle? 
• ABC – Scammers using our scam awareness against us 
• SMH – Is it too hard for middle Australia to get loans from risk-averse banks?  
• The Conversation – Will digital currencies become the norm?  
• ABC – Privacy laws preventing banks from addressing financial abuse 

Weekly Update