Over five years since the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry & yet banks are still behaving badly

Just over a month ago a parliamentary in inquiry told the general public what it had long suspect - that Australia's banks were reducing the number of storefronts with a total of 596 towns that once had between one or four major banks by 2023 having no form of bank at all.

According to Rural and Regional Affairs and Transport References Committee's May 2024 Inquiry into bank closures in regional Australia, there were 2,802 banks in 1,126 regional locations across Australia in 1975.

However, just 958 remained open by March 2023 - a cut of 66 per cent of the network or a loss of 1844 banks in 1031 regional towns, cities and coastal communities in just over 45 years.

So why is this happening? It can't solely be as a consequence of the global pandemic or subsequent international or domestic economic pressures. 

PAST PREDICTIONS VS PRESENT BEHAVIOUR

Wilson, Therese, "Banks behaving badly" [2004] AltLawJl 88; Alternative Law Journal 294:

The 'deregulation' of banking in Australia during the 1980s has been cited as a major reason for banks pursuing profitable transactions and avoiding what they perceive to be higher risk transactions. Whilst the Wallis lnquiry predicted increased competition in the financial services market that would bring about affordable financial services for all Australians, no such competition has emerged.....

Banks are now trying to attract and retain what they regard as a 'more profitable' group of customers, and have tended to close banks in areas populated by low-income earners. Fees on savings accounts have increased, and tend to be waived only for customers with home loans or investments with the bank, or members of professional associations. Further, very heavy fees are imposed for defaults such as cheques that bounce or overdrawn accounts. Low-income earners are left without the ability to save in any substantial manner, and without access to 'safe credit'. This results in 'financial exclusion' defined as:

lack of access to financial services by individuals or communities due to their geographic location, economic Situation or any other anomalous social condition which prevents people from fully participating in the economic and social structures of mainstream communities.

BEHAVIOURAL CHANGE - FACT OR MYTH?

It's over five years since the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry handed down its final report.

Yet banks are still behaving badly.

In June 2023 the Banking Code Compliance Committee (BCCC) reported:

....a concerning increase in breaches of Part 9 of the Code, which contains the crucial obligations to support customers facing financial difficulty. The almost 40% increase of these breaches is alarming.

In a time marked by escalating inflation and living costs, the imperative for banks to provide support to customers in financial difficulty cannot be overstated. Breaches of these obligations can lead to serious consumer detriment.

Banks reported failing to respond to financial hardship requests, persisting with debt collection activities despite hardship arrangements being in place, and neglecting to follow through on agreed-upon hardship arrangements. Such failings not only breach Code obligations, but they also contribute to a decline in trust and confidence in the industry.

Nine banks (including three major banks) contributed to the 4,415 Part 9 breaches between July 2022 and June 2023.

The poor practices and non-compliance identified in a June 2023 BCCC report fell into three categories:

1. Fees and charges for services no longer provided

Banks continuing to apply fees and charges to accounts of deceased customers despite

being notified of their passing.

2. Failing to act within timeframes

Banks failing to act on requests or instructions within the obligatory 14 days of receiving notifications or information.

3. Lack of respect and compassion

Banks failing to treat representatives and family of deceased customers with the respect and compassion expected in the circumstances.

That report noted:

On the specific issue of fees being charged for services no longer provided on deceased estates, banks committed to rectifying the issues and had plans in place to improve processes.

Some banks were aware of the issues before our inquiry and had already begun comprehensive improvements and remediation programs.

However, given the time since the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry – of which fees for no service, in the context of failure to provide personal financial advice, was a key focus – and the findings of our inquiry, this action has been slow and inconsistent.

Many banks were on notice of the harm caused by fees for no service from ASIC’s investigations into financial advice misconduct in 2015. ASIC reported that, at the end of 2022, banks and financial institutions had provided over $4.7 billion in compensation under remediation programs for loss or detriment due to financial advice misconduct.

Charging fees, including to people known to have died, was a key focus of the second-round hearings on financial advice at the Royal Commission in 2018.

On 2 July 2024 BCCC issued a media release announcing:

The Banking Code Compliance Committee (BCCC) has sanctioned ANZ for not stopping or refunding fees for deceased estates, as well as not responding to representatives of deceased estates within the required timeframe.

Between July 2019 and September 2023, ANZ breached its Code obligations by failing to stop or refund fees charged to deceased estates after customers’ deaths.

ANZ further breached its Code obligations by not responding to instructions or requests for information from representatives of deceased estates within the required 14 days.

Chair of the BCCC, Ian Govey AM, noted the seriousness of the breaches.

“The decision to name ANZ for its non-compliance reflects the seriousness of its Code breaches," Mr Govey said.

“Naming a bank is a sanction that we reserve for the most serious and systemic breaches.

“The significance of the deficiencies in ANZ’s compliance frameworks was deeply concerning. Its non-compliance warranted such a sanction," said Mr Govey.

Despite first identifying the issues in early 2022, ANZ took over a year to implement solutions and then nearly two years to start its customer remediation program, which is still ongoing and expected to be finalised by the end of July 2024.

Mr Govey noted concerns with the remediation efforts from ANZ.

“The remediation did not meet expectations. Once aware of the issues, ANZ did not act with sufficient urgency to remediate the affected customers. It should have done more to address this more quickly,” Mr Govey said.

However, the BCCC acknowledged that ANZ’s remediation included the use of assumptions beneficial to customers, including reimbursing charges that may already have been refunded.

The BCCC also found that another bank had breached obligations by failing to stop or refund certain fees charged to deceased estates after customers’ deaths.

However, in that case, the sanction from the BCCC was to formally warn the bank about its conduct.

In the previous month June 2024 BCCC had announced:

The Banking Code Compliance Committee (BCCC) has sanctioned Westpac Bank for serious and systemic breaches of the Banking Code of Practice (the Banking Code) after it failed to provide adequate support to customers following the closure of its branch in Tennant Creek, Northern Territory.

The BCCC’s investigation revealed that Westpac did not comply with its obligations under the Banking Code and the Australian Banking Association’s (ABA) Branch Closure Protocol when it closed its Tennant Creek branch in September 2022.

The findings show that Westpac needed to do much more to support customers to transition to other ways of banking, engage with the community to promptly address concerns, and provide adequate assistance to customers in remote areas to ensure they could still access essential banking services....

Clarence River Estuary Cleanup, Saturday 6 July 2024 for 9am start. Volunteers needed from recreational angler community & friends. Register now!

 

Clarence River Estuary Cleanup

WHEN: Saturday 6 July 2024

START: 9am

WHERE: Meet OzFish cleanup crew at dirt park near Oyster Channel Bridge, Yamba NSW 2464

 

REGISTRATION ESSENTIAL: Go to

 https://ozfish.org.au/event/keep-it-clean-yamba-nsw-6-july/

Approach to town side of Oyster Channel Bridge

 

Mirage News. 27 June 2024:

OzFish Unlimited – Australia fishing conservation charity, together with NSW DPI Fisheries are calling on recreational anglers to help clean up the banks of the mighty Clarence River in Yamba on Saturday July 6.

Through the state-wide KEEP IT CLEAN initiative, both organisations want to see as many anglers involved.

"No one wants to catch a plastic bag when they're out on the water and we know the impacts litter can have on local wildlife and marine life. Clean-ups like this make for better fishing experience for all involved," said Caitlin Berecry, OzFish spokesperson.

"Rec fishers see the impacts of litter. And it's not always rec fishing litter that we're cleaning up but by getting involved fishos are inspiring other to think local and create change.

"We simply need Yamba anglers to come down and give us a few hours to better the local environment," said Caitlin.

This clean up and it's follow up event scheduled for early September are part of a wider project OzFish is running in collaboration with the Yaegl Traditional Owners Aboriginal Corporation RNTBC (Yaegl TOAC).

The project aims to restore saltmarsh and mangroves in the Clarence River Estuary, which are culturally and ecologically important native title sites on Yaegl Country.

These habitats are absolutely vital for a healthy fishery, with Clarence saltmarshes being valued at $25,741 per hectare – showing just how productive they really are.

Volunteers can meet the clean-up crew at the dirt park by the Oyster Channel Bridge at 9am. Look out for the OzFish signage. All the necessary equipment for the clean-up will be provided but volunteers are encouraged to bring water and wear sun-safe clothing.

All the collected rubbish is sorted and recorded at the end of the clean-up with items sent to recycling where possible. Eligible items may eventually find their way back into the hands of rec anglers through OzFish's Tackle Loop program.

Prizes and giveaways will be up for grabs.

Registration is essential for the event. To register head to https://ozfish.org.au/event/keep-it-clean-yamba-nsw-6-july/

 

Keep it Clean is a partnership with OzFish and the NSW Department of Primary Industries. It is made possible through funding by the Recreational Fishing Trusts and Marine Estate Management Strategy. [my yellow highlighting]

 

 

OzFish is partnering with NSW DPI to redefine what it means to be a responsible angler. Join us on a Fish For Life journey to preserve the beauty of our waterways and ensure generations to come can experience the thrill of the catch.

Our goal is crystal clear: empower anglers to champion sustainable fishing practices. It’s not just about catching memories; it’s about leaving a legacy of cleaner waters and unspoiled habitats.

Each time you go fishing is an opportunity to make a difference and the Fish For Life – Keep It Clean campaign encourages exactly that. Be part of making a difference use the hashtag #FishForLifeKeepItClean, share the videos, and show Australia just how much our waterways mean to recreational fishers by getting involved.

CLIMATE CHANGE 2024: Does the climate in the region where you live still feel like the regional climate as you remember it from ten, fifteen, twenty or forty years ago?

 

As seasons of the year in Australia begin to change in character there is some value in establishing what the climate zones across the country's 7.688 million km² landmass are, in order to form personal comparisons that are based on more than childhood memories when attempting to confirm our sense of what Spring, Summer, Autumn and Winter is in 2024.

According to the Australian Bureau of Meteorology (BOM); "Australia is one of only a few countries in the world to span several climate zones".

There is a tropical zone in the north, a subtropical zone across much of our centre and, temperate zones in the south.

This simplified outline of the spatial distribution of these zones is based on meteorological opinion in 2018.

Again according to BOM these are the principal characteristics of these zones:

Tropical zone

Areas near the equator get direct sunlight all year round, meaning that at noon the sun is right overhead. This is called the tropical zone.

When the sunlight hits the surface of the earth or the ocean it warms the air, causing it to rise. The warm air cools as it rises, and the water in the air condenses and falls as rain.

It makes sense then that the tropical zone, which includes places like Cairns and Darwin, is warm and humid most of the year, with a clear wet and dry season as the tropical rain belt shifts south and then north of the equator.

Subtropical zone

If you move further away from the equator, you enter the subtropical zone. This is where the warm rising air air from the tropics falls as dry, cooler air. The sinking air makes for high pressure systems and clear skies at the Earth's surface, so the subtropical zone is fairly dry.

Places like Longreach and Brisbane are considered subtropical. Summers are hot, winters are mild and this zone is where you’ll find most of the world's deserts.

Temperate zone

The next climate zone is the temperate zone. The Earth is round, so sunlight hits these areas on more of an angle then at the equator. The same amount of energy then has to cover a larger area so it’s cooler here than in the tropics.

The Earth is also tilted, so as we move around the sun during the year, temperate zones receive less direct sunlight in winter and more in summer.

Places in the temperate zone—like Hobart and Melbourne—therefore have distinct seasons, with warm, long days in summer, and cold, short days in winter. Most regions in the temperate zone also tend to receive more rainfall in winter than in summer.

Polar zone

The coldest climate zone is the polar zone. Here, the sun is lower in the sky and its rays reach Earth at an even larger angle.

The polar zone is very cold and cold air can't hold much moisture. Some areas in the Arctic and Antarctica are as dry as the subtropical deserts!

So does the climate in the region where you live still feel like the regional climate as you remember it from ten, fifteen, twenty or forty years ago?

Given that by 2023 Australia had a national average surface temp of 1.50°C ± 0.23°C above pre-industrial levels, which has led to an increase in the frequency of extreme heat events.

That in recent decades, there has also been a trend towards a greater proportion of rainfall from high intensity, short duration rainfall events, especially across northern Australia during the wet season.

As for April to October rainfall, it has declined across southern Australia in recent decades, due to a combination of long-term natural variability and changes in atmospheric circulation caused by an increase in greenhouse gas concentrations.

Does it still seem like climate as usual, given in 2023 this country experienced its equal eighth-warmest year on record with the national mean temperature 0.98 °C warmer than the 1961–1990 average. With mean annual maximum and minimum temperatures were above average for all six states and the Northern Territory. While Winter in 2023 was Australia's warmest on record, with the national mean temperature 1.53 °C above the 1961–1990 average and Summer was peppered by frequent low-to-severe intensity heatwave conditions.

It was a year in which during the first quarter, Australia experienced multiple major flood events, mostly across inland and northern regions and then come the August to October period the country experienced its driest three month period on record since 1900.

Surface water storages declined but bounced back to 74% of available national capacity by year's end.

Come 2024 and it seemed that Australia's climate and weather patterns lurched between extremes with Nature trying to find some sort of balance despite the fact that the national land surface temperature still remains at 1.50°C ± 0.23°C above pre-industrial levels with a reasonable chance that it will end the year even higher.

BOM's Seasonal Summary for Australia in Autumn 2024 revealed that a heatwave affected most of south-eastern Australia in the first half of March, with both daytime and night-time temperatures more than 10 °C above the March average, while parts of Western Australia's far west experienced very much above average temperatures in all three autumn months. In May, Perth Metro had 13 consecutive days of at least 25.0 °C, a May record for the combined sites of Perth.

The Summary also stated that the national area-averaged mean temperature for autumn was 0.53 °C above the 1961–1990 average and 0.46 °C above the 1961–1990 autumn area-average mean maximum temperature.

Adding that Area-averaged maximum temperatures were above average for all states, while for the Northern Territory it was 0.88 °C below average and the lowest since 2012.

Mean maximum temperatures were above average to very much above average (in the highest 10% of all autumns since 1910) for Victoria, Tasmania, most of New South Wales and South Australia, a large area in the western part of Western Australia, the Top End of the Northern Territory and coastal and inland areas of central Queensland. Autumn maximum temperatures were the highest on record for parts of Western Australia's west coast, with many stations in these areas having their highest mean maximum temperatures records for autumn.

Mean maximum temperatures were below average to very much below average (in the lowest 10% of all autumns since 1910) for inland areas of the Northern Territory and Western Australia.