The Unpleasant Truth About Australian Banking

Chapter 8 – A POCKET FULL OF CHANGE: PART 1

In an effort to expand market share in the 1980’s following deregulation, banks commenced a period of mergers and acquisitions. The major banks became mega- corporations. This meant customers unfairly dealt by the giant corporations would have little prospect of funding any action in the courts to resolve differences or disputes. Former Governor General and Justice […]

Chapter 7 – CHANGING THE GUARD

The banks have been part of Australian society for more than a century however the government did not formally nationalise them until 1947. Since then, the government has attempted to establish a competitive banking and finance sector that is best for the industry and customers. The Australian public needs to put its trust in the […]

Chapter 6 – A LITTLE VINEGAR SOURS THE WINE

The architects of the Code of Banking Practice were members of the Martin Committee. During the infancy of self-regulation in the banking and financial sector, the government relied on advice from several advisory bodies, which included bankers. Whilst it’s unlikely all government advisers would have been privy to the later inefficacy and shortcomings of bank/ […]

Chapter 5 – RESTORING REGULATION

Almost every Australian has a relationship with their bank. In today’s cashless society it’s practically impossible to get by without a bank account and reliance on electronic transfers. Debt is the norm. Therefore, today’s customers expect an easy relationship as banking and financial services are essential. Following the 1981 Campbell Committee report, there was a […]

Chapter 10 – PLANNING THE BANK CODE (1996): PART 1

The government required the Code of Banking Practice to incorporate best practices, and incorporate key principles of banking law. The proposed Code would require the banks to commit to a voluntary Code and carry out agreed practices. By doing so, the Code safeguard customers in case of disputes. The Martin Committee noted when customers are […]

Chapter 4 – BANKING CODE (2004)

When considering the consequences of the disingenuous code/customer relationship, and the ambiguous wording in the Code (2003), the researchers noted several legal issues. Despite having no experience at law or in the legal processes, the researchers looked at the conduct of bank directors and banks, and the corrupt arrangements engineered by the CEOs, commencing in […]

Chapter 9 – A POCKET FULL OF CHANGE: PART 2

The level of detail completed by the Martin Committee was impressive. It was a cookbook of advice for parties to understand their role in the proposed change process. Unlike many Government manuscripts, this one was not intended to sit on a shelf as a forgotten dream. For the report to achieve successful implementation, it required widespread […]

Chapter 3 – BANKING CODE (2003)

The first Code of Banking Practice was published in 1996, and later the ABA published its revised Code (2003). From inception, the Code (2003) was designed to provide banks with an opportunity to conceal dishonest and unethical banking practices. It worked like this: A subscribing bank receives a complaint alleging misconduct by a director or one of […]

Chapter 2 – LESSENING REGULATION

The Martin Committee stated best practice should not be the sole prerogative of banks. The Campbell Committee’s inquiry into the Australian financial system, on the other hand, endorsed the need for increased competition. Campbell’s recommendations were set out in its Final Report, published in September 1981. This was the first major change in terms of regulation. […]

Chapter 1 – THE POWERS OF BANKS

It is virtually impossible to function in the 21st century without having a relationship with a bank, as the cash economy has been replaced with an efficient payments system. However, less regulation in the banking and financial industry over the past forty years has resulted in banks accumulating monopoly powers. This was evident in 1991 […]

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