In a report released today, the Banking Code Compliance Committee (BCCC) said 19 subscriber banks self-reported 20,605 breaches of the Banking Code of Practice for the period January to June 2021.
This is a decrease of 10% over the previous six months. One major bank reported a 38% decrease of the total number of reported breaches.
The report is the BCCC’s third report on how the banks have handled their compliance obligations during the COVID-19 pandemic. The data reported for this period showed overall banks worked hard to assist customers affected by the pandemic, however, failure to update internal systems resulted in poor customer outcomes.
The BCCC’s Independent Chair, Ian Govey AM, said while the overall 10% decrease is a positive development, there is further work to be done and room for improvement.
The Code obligations most commonly breached by banks relate to account management, guarantees, lending to small business, provision of clear information, and access to inclusive and accessible banking services.
The BCCC is continuing to engage with the Australian Banking Association and banks about ways to streamline reporting requirements and develop additional guidance to improve the consistency and quality of banks’ breach data.
Further information:
Prue Monument
Chief Executive Officer
Banking Code Compliance Committee
[email protected]
Further information about the Banking Code Compliance Committee is available on its website – bankingcode.org.au.
The BCCC’s report: Banks’ compliance with the Banking Code of Practice – January to June 2021 is available on the BCCC’s website under Resources and Publications > Reports.