Australian Bank reforms are established from the 1960s since The Commonwealth Bank was formed and established in Sydney.
Some of the significant changes in banking reforms are listed down here:
1. Securing economic growth and unemployment
The Reserve Bank of Australia actively anchored the economy during the global financial crisis by launching bank guarantees which then helped in stabilizing the financial system and grant access to credit for the public and needy.
In the absence of this step by the RBA, there would have been lower lending and higher interest rates which would have led unemployment at the higher end and economic growth at the lower end.
2. Recognition by the IMF and the Organization for Economic Co-operation and Development
These banking reforms were then acknowledged and recognized by the International Monetary Fund as well as by the Organization for Economic Co-operation and Development.
3. Bank Guarantees
This was in regard to fund cash deposit to small-scale lenders and help non-major banks to get a credit of approximately A$ 65 billion as wholesale funding even when the Australian economy’s global funding markets were unsupportive or disabled.
4. Enabling market for Home Loans and Small Business Loans
An investment of approximate of A$ 16 billion into residential mortgages of high quality along with a rating of AAA has been proved to be a source for the Home Loan Business also a marketplace for small-scale Business Loans.
5. Uniform Consumer Credit Law
For the first time in the 100 year banking history of Australia, a national law regarding Consumer Credit has been formed which also aims protect all the consumers across states and demographical areas.
6. Laws for eliminating unfair mortgage exit load charges
This is a customer-centric law enunciated for providing the customer with the best mortgage prices without the existing company charging any exit load to the customer even though the mortgage company has to function on a cost recovery basis.
Some of the other reforms include-
● A new format of paying bank staff that is reforming the salary apart from the bonuses.
● More powerful Whistleblower policies
● Introduction to real-time banking and open data which shall help in maintaining transparency between the bank and the customer. The hotline number is 1300- 300- 630.
● The presence of Customer Advocates which shall help in catering to customer complaints or feedbacks.
● The RBA also has worked on lower interest payments upon usage of credit cards.
These are some of the banking reforms which have been introduced for the benefits of the bank employees and customer which can rely on the government at any point in time.
Bank employees may rely on employment issues or organizational issues which can help them work in harmony in Australia. Whereas the customers shall become happy that they are not forced to invest in a particular company only.