Weekly Update: 30 June 2023

“[The Branch Closure Support] Protocol will go a long way to giving people a better understanding of when a branch will close… literally doing things like walking an older customer down the road to the post office, introducing them to the post office staff and letting them understand what they can do in the post office to continue face-to-face banking.”  

ABA CEO Anna Bligh speaking to 2GB’s Breakfast Show with Mark Levy

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Parliamentary Update:

• Treasurer Jim Chalmers released the Federal Government’s response to the Council of Financial Regulators August 2022 advice on the issue of debanking. In response to CFR’s advice, the Government:
  • Agrees to the data collection recommendation; 
  • Supports the transparency and fairness measures recommendation in principle and that Treasury will work with banks and AUSTRAC to implement these measures “to the greatest extent possible” ; 
  • Supports the guidance by major banks recommendation in principle; and 
  • Notes the capability uplift recommendation.  
• The House Standing Committee on Social Policy and Legal Affairs delivered a report on gambling harm titled ‘You win some, you lose more’. The report contains 31 recommendations and received the unanimous support of Committee Members comprising Labor, Coalition and a Teal MP. Recommendations 10 and 13 specifically mention the role of Australian banks.  
• Housing Minister Julie Collins announced a revised National Partnership Agreement to deliver certainty for existing HomeBuilder applicants. The Minister also took part in a key media interview on ABC Insiders.  
• The Treasurer, Minister for Climate Change and Energy, and Assistant Treasurer announced a consultation titled ‘Climate-related financial disclosure: Second consultation’.  
• Assistant Treasurer Stephen Jones announced a review of ASIC’s Industry Funding Model. 

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Policy Update:

• On 27 June, the Australian Government released the second round of its consultation on climate-related financial disclosures. While the first round of consultation in early 2022 sought feedback on high-level principles, the second round outlined more detailed proposals for comment. The proposal outlines a phased approach to implementation. Reporting for larger entities would begin in 2024-25, with smaller entities joining over the following three years. In addition to the phasing of reporting entities, the content of disclosures and levels of assurance would also be phased in. Treasury has adopted ABA’s proposal for regulatory-only enforcement of disclosure requirements for a fixed period of three years. Comments on the consultation are due by 21 July 2023, and the ABA is coordinating a submission through the ISSB Sustainability and Climate Disclosures Working Group.

• The ABA also:
  • met with Treasury to discuss the current consultations on payments reform which were released by the Treasurer at the ABA’s recent annual conference.   
  • held a briefing session with Treasury on the Banking Code  
  • attended a Treasury discussion forum with industry on Buy Now Pay Later reform 
  • held stakeholder briefing sessions on the new Branch Closure Support Protocol. 
• Commonwealth Bank’s Group Executive of Institutional Banking & Markets, Andrew Hinchcliff (pictured below) spoke at a Trans-Tasman business lunch on opportunities related to transitioning to net zero, onshoring and its implications for de-globalisation, and the importance AI will have in future commercial entities.

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Regulatory Update:The RBA:

• In a key session at the ABA’s recent annual conference, we heard from ASIC Chair Joseph Longo, APRA Chair John Lonsdale and RBA Deputy Governor Michele Bullock on the ‘role of regulation in uncertain economic times’. Click the following link to watch the full session: https://www.youtube.com/watch?v=gXYPU3LV7cY

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Economic Update:

In May 2023: 

• Inflation growth slowed to 5.6%, according to ABS’ experimental monthly CPI measure. The main contributors to inflation were household essentials: Dairy, electricity and bread.
• Retail trade grew by 0.7% month on month and 4.2% when compared with May 2022.
• There were 431,600 job vacancies, a reduction of 2% from the February 2022 quarter. However, taken in context, they remain at elevated levels, well above the roughly 220,000 vacancies leading into the COVID period.

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Communications and Media:

• Media reported on the ABA’s new Branch Closure Support Protocol which will be in effect from tomorrow. Key reports included an interview with 2GB’s Mark Levy, ABC Radio, plus reports on Channel 7 (below) and Channel 9. The new Protocol governs the steps that banks must follow when closing branches, implementing the recommendations of the Federal Government Regional Banking Taskforce inquiry into branch closures.

• The ABA also highlighted the importance of the Australian small business sector as the engine of the country’s economy, issuing a media release on Tuesday to coincide with the United Nations WorldMicro, Small and Medium Sized Enterprises Day.

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Upcoming Submissions:

Published submissions

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Selected Media:

• The Australian – NAB to cut off services to financial abusers  
• AFR – Lot of hard work left to tame the inflation dragon  
• SMH – NAB says households resilient despite rate rises and high inflation  
• Canberra Times – Cracking down on gambling ads: what’s been recommended  

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