Overview

Code:    2013 Code of Banking Practice

Type:     Major Inquiry

Status:  In progress

Summary

On 23 May 2019, the Banking Code Compliance Committee’s (BCCC) predecessor, the Code Compliance Monitoring Committee (CCMC), commenced an Inquiry into Code-subscribing banks’ compliance with Clause 31 of the 2013 Code of Banking Practice.

Clause 31 of the 2013 Code of Banking Practice contains banks’ obligations to prospective and existing guarantors, concerning their rights:

  • to specific information and notices, before agreeing to guarantee a loan
  • when deciding to sign the guarantee agreement
  • during the course of the guarantee, and
  • enforcement of the guarantee, in the event of default.

The Inquiry will also cover the compliance monitoring and controls that the banks’ have to ensure compliance with the Code’s guarantee obligations.

The Inquiry report will highlight equivalent obligations in the 2019 Banking Code of Practice and share good industry practice.

Timeline

Stages and dates

Bank information request

May 2019 – Jul 2019

Performance Audits

Mar 2020 – Nov 2020

Stakeholder consultation

May 2019 – Oct 2020

Inquiry Report

January 2021

Stakeholder engagement

The BCCC also plans to engage with key stakeholders including consumer advocates and small business representatives throughout the Inquiry.

The BCCC welcomes input to the Inquiry from interested parties and can be contacted by email at: [email protected]