Weekly Update: 15 March 2024

Highlights this week:

• Announcement: Assistant Treasurer Stephen Jones announced that anti-scam initiatives from the private sector and Government are having some early signs of success 
• Key data: Loans 30-89 days past due are now 0.53% of total housing credit portfolio while loans 90 days past due (non-performing) are 0.76% 

Quote of the week:
“…no social media platform is above the law. Frankly [I am] disappointed in Meta’s response to the consultation that we held on the codes of practice where they say yes this is a big problem but it’s all too hard, we can’t do anything about it. Give me a break. These guys are the biggest technologists in the world, they employ the best information technologists, the best engineers, the best process experts in the world, they are the biggest and the best. Don’t tell me they can’t do more.”

– Assistant Treasurer and Minister for Financial Services Stephen Jones speaking at the Global Fraud Summit, London

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Parliamentary Update:

• Assistant Treasurer Stephen Jones announced that anti-scam initiatives from the private sector and Government are having some early signs of success. Compared with data from the same Oct-Dec quarter in 2022, they have seen a significant reduction in losses, including:
  • 38 per cent decrease in losses to investment scams 
  • 74 per cent decrease in losses by cryptocurrency 
  • 31 per cent decrease in losses by bank transfer 
• The Assistant Treasurer and ABA Chief of Policy Chris Taylor attended a Global Fraud Summit in London hosted by the UK Home Secretary.
  • The Summit released a communique which sets out an agreed global framework to tackle fraud and declares that fraud is an increasing transnational threat. 
  • The Summit was attended by ministers and representatives from the ‘Five Eyes’ countries (Australia, Canada, New Zealand, the US and the UK), G7, Singapore and Republic of Korea alongside INTERPOL, UNODC, FATF and the European Union. 
• Treasurer Jim Chalmers announced that the Albanese Government will introduce a financial sector regulatory initiatives grid to make sure the standard business of regulation is carried out in a more coordinated way.
  • It will be modelled on the grid in place in the United Kingdom, which has proved a useful tool in coordinating regulatory effort. 
• The Treasurer announced the abolition of almost 500 nuisance tariffs from 1 July this year. 
• The Treasurer also delivered a pre-Budget address to CEDA in Sydney, followed by a Q&A. The Treasurer confirmed the Government are ‘shooting for a second surplus’, would consider further targeted cost-of-living measures, and that Treasury Secretary Steven Kennedy would be reappointed for another five years.  
• The Senate Committee inquiring into branch closures held public hearings in Tom Price, WA.
  • (Contact ABA Corporate Affairs team for a summary of proceedings.) 

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Policy Update:

The ABA:  

• met with the International Swaps and Derivatives Association (UK) regarding APRAs Fundamental Review of the Trading Book (FRTB) 
• attended DCCEEW workshop on residential energy efficiency  
• met with ARNECC Chair and members regarding the Electronic Conveyancing National Law consultation feedback 
• met with DCCEEW, DISR to receive an update on Net Zero Built Environment Sector Plan (BESP) & Trajectory for Low Energy Buildings Update 
• attended the AP+ Summit: Beyond Tomorrow

Submissions: 

• IBFED BCBS Pillar 3 Climate Disclosures.  
• ASIC consultation on reference checking and information sharing protocol. 

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Regulatory Update:

• APRA releases quarterly authorised deposit-taking institution statistics for December 2023. Read more 
• APRA removes National Australia Bank’s operational risk capital add-on. Read more 
• APRA and ASIC release a cross-industry information package on the Financial Accountability Regime. Read more 

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Economic Update:

• The proportion of bank housing loans past due relative to all loans, has continued to trend upwards, but remain lower than the months leading into COVID. Loans 30-89 days past due are now 0.53% of total housing credit portfolio while loans 90 days past due (non-performing) are 0.76%, Figure 1. 
• As at December 31, 2023 the value of funds sitting in bank offset accounts had now grown to $264 billion, an increase of 9.4% from December 31, 2022.  

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Communications and Media:

• The ABA:
  • released a statement on a report by the National Anti-Scam Centre showing scam losses reduced by 43% in the December 2023 quarter. Anna Bligh said banks continued to work around the clock to protect Australians from scams and the industry would continue to invest record amounts in the latest scam fighting technology.
  • welcomed the Albanese Government’s decision to introduce a regulatory initiatives grid, saying ‘better coordination of regulation will provide more certainty for banks and ensure the sector continues to deliver for customers and the economy.’ 

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Coming up next week:

Parliament/ regulators:  

• 18/3-21/3 Parliament Sitting
• 19/3 RBA decision 2:30pm; press conf. 3:30pm
• 22/3 Inquiry into insurers’ responses to 2022 major floods claims
• Senate Bills:
  • Competition and Consumer Amendment (Fair Go for Consumers and Small Business) Bill 2024;
  • Making Multinationals Pay Their Fair Share – Integrity and Transparency) Bill 2023
  • Financial Framework (Supplementary Powers) Amendment Bill 2024

Data announcements:  

• 21/3 Labour Force
• 22/3 RBA Financial Stability Review

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Upcoming Submissions:

Published submissions

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Selected Media:

• SMH – ‘Not good enough’: Minister lashes Meta as losses rise from scams on Facebook 
• AFR – Canberra’s stoush with Meta wins global support 
• The Guardian – Don’t expect a ‘big cash splash’ in this year’s budget, Jim Chalmers tells taxpayers 
• ABC – With Armaguard under threat of insolvency, big four banks poised to intervene to save cash transporter 

Anna BlighWeekly Update