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.
Stages and dates
|Bank information request||
May 2019 – Jul 2019
Mar 2020 – Nov 2020
May 2019 – Oct 2020
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]