Weekly update: 24.03.23

“Dedicated customer support teams stand ready and are in fact proactively communicating with customers at risk of financial difficulty. This network of help is a highly structured, organised and experienced support system.” 

 ABA CEO Anna Bligh speaking with Mortgage Professional Australia on assisting financial difficulty

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Parliamentary Update:

• Bills to implement the Financial Accountability Regime and Compensation Scheme of Last Resort passed the House without amendment, and now head to the Senate. The timing of the Bills’ passage through the Senate is uncertain, but the Government has stated its intention to do so by the end of March.
• The Prime Minister set out next steps towards the Voice Referendum, including the Constitutional Alteration Bill. The referendum is expected to be held between October and December this year.
• Treasurer Jim Chalmers announced a review into competition in the provision of clearing and settlement services.
• The Treasurer issued a statement on the passing of former RBA Governor Robert Alan Johnston AC.

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Policy Update:

• The ABA attended an AusPayNet Economic Crime Forum meeting. The forum discussed good industry practices and how the payments industry is seeking to disrupt and prevent scams. The forum also heard updates from law enforcement and regulators.
• The ABA spoke at the Broome Circle banking roundtable, an initiative to bring together banks and key local stakeholders in the Kimberley on First Nations access to banking issues. The ABA updated the roundtable on the work undertaken by banks to assist customers affected by the floods in the Kimberley and broader work on the acceptance of non-traditional forms of identification, particularly for customers in the bush.
• Suicide Prevention Australia (SPA) provided a briefing to representatives from ABA member banks in their customer hardship and vulnerability teams. The briefing covered recent research SPA conducted regarding the link between housing stress and suicide, as well as tools available to banks to provide safe and appropriate levels of support to individuals at risk of suicide.  

• The ABA has been running external consultations on the draft Branch Closure Support Protocol this week. This follows extensive work by ABA members to implement the recommendations of the Regional Banking Taskforce inquiry since the final report was handed down in September 2022, including recommendations to strengthen the current ABA Branch Closure Protocol. The draft Branch Closure Support Protocol includes important uplifts around communications and customer support when a branch closes. The ABA has been engaging with key regional, consumer and industry stakeholders.
• The ABA attended the first ABA / ATO Working Group meeting for 2023. At the meeting we discussed (among other topics) the ongoing Justified Trust program, RCTI (Recipient Credited Tax Invoices) changes, and the updates to the PCR (Pre-lodgement Compliance Review) Framework.
• ABA staff attended the Cyber & Infrastructure Security Conference where they heard from senior government and industry officials on the future of organisational security and resilience.

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Regulatory Update:

• The RBA released minutes from its March 2023 Monetary Policy Meeting.
• RBA Assistant Governor (Financial Markets), Christopher Kent, delivered a key speech on ‘Long and Variable Monetary Policy Lags’.
• The RBA released a research discussion paper on productivity, titled ‘Doing Less, with Less: Capital Misallocation, Investment and the Productivity Slowdown in Australia’.

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Economic Update:

• Australian National Accounts: Finance and Wealth were released by the ABS this week. Household wealth fell by 0.4 per cent (to $14,346b) in the December quarter, reflective of declining house prices. Australian households hold $2.67 trillion in liabilities and $6.67 trillion in assets. The majority (93%) of household liabilities are long term loans, and the majority of these are held with ADIs (64%). However this is a fall from the proportion of long-term loans held with ADIs in the early 90s, when they accounted for around 80 per cent of all long-term loans held by households, Figure 1

Figure 1: Liabilities of Australian households, June 1988 – December 2022, $m

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Communications and Media Update:

• An opinion piece by ABA Chief Executive Anna Bligh was published in Mortgage Professional Australia, outlining how banks stand ready to help customers who are in financial difficulty. Read the full piece here.
• Anna Bligh spoke with ABC Radio Hobart’s morning show with Leon Compton on Wednesday regarding interest rates and cost of living issues.

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Upcoming Events:

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Submissions Lodged:

• Electronic Transaction Act Consultation
• Rationalisation of Ending ASIC Instrument Measures – Exposure Draft
• Recipient Created Tax Invoices

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Upcoming Submissions:

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Selected Media:

• The Australian – Recruiters move on the creme of the Credit Suisse crop as rivals attempt to lure customers away
• AFR – Bank stocks climb as crisis fears evaporate
• AFR – RBA will consider pause on rate rises in April
• SMH – Aussie bank funding costs tipped to rise on global turmoil
• AFR – Most customers refinancing mortgages are switching

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Weekly Update