MICROCAPITAL BRIEF: Australian Bankers’ Association Boosts Consumer Protection in Code of Banking Practice

The 25-member Australian Bankers’ Association (ABA) reportedly has amended its code of banking practice, which is expected to increase transparency in customer interactions. Under the new provisions, ABA members are required to give at least ten days’ notice before altering terms and conditions held by a small business owner. Member banks must also provide customers information on accounts with lower fees, when applicable. Members are committed to ensure information accessibility and assistance in identification requirements for indigenous community members. The revisions provide avenues for customers to complain if they feel their bank fails to meet obligations of the code.

Good Shepherd Microfinance, an Australian microfinance institution (MFI), reportedly has expressed optimism over the recent announcement, and its staff “would be monitoring the take up of the new code and are happy to share knowledge, expertise and experience with the sector where it leads to improved access.”

ABA members have until February 2014 to comply with revised code of conduct [1] [2].

By Brendan Millan, Research Associate

About Good Shepherd Microfinance

Founded in 1981, Good Shepherd Microfinance is an Australian microfinance institution (MFI) operating via approximately 400 locations. For the year 2012, Good Shepherd Microfinance reported total assets of AUD 33.1 million (USD 34.4 million), approximately 20,000 active loans and deposits of AUD 33,200 (USD 34,500). The number of deposits is unavailable [3].

About Australian Bankers’ Association (ABA)

Formed in the late 1940s, ABA consists of 25 members operating in Australia’s financial sector. Its purpose is to provide analysis and contribute to the development of public policy on the financial sector in the country.

Sources and Additional Resources:

[1] Pro Bono Australia: “Code for Banking Practice Welcomed”, http://www.probonoaustralia.com.au/news/2013/01/code-banking-practice-welcomed#

[2] Startupsmart: “Small business set to benefit from revised Code of Banking Practice”, http://www.startupsmart.com.au/legal-matters/small-business-set-to-benefit-from-revised-code-of-banking-practice/201302018794.html

[3] Good Shepherd Microfinance: “Financial Statements for The Year Ended 30 June 2012”, http://www.goodshepherdmicrofinance.org.au/sites/default/files/Signed%20Audited%20financial%20statements%202012.pdf

MicroCapital.org story, April 2, 2012, “Mobile Handset Initiated Transactions (mHITs) of Australia Expands Remittance Service to the Philippines”, https://www.microcapital.org/microcapital-brief-mobile-handset-initiated-transactions-mhits-of-australia-expands-remittance-service-to-the-philippines/

MicroCapital.org story, March 28, 2012, “Mobile Handset Initiated Transactions (mHITs) of Australia Expands Remittance Service to Ghana”, https://www.microcapital.org/microcapital-brief-mobile-handset-initiated-transactions-mhits-of-australia-expands-remittance-service-to-ghana/

MicroCapital.org story, February 6, 2012, “Australia Funds Financial Education Curriculum Development Project (FinED) to Serve Fiji’s Primary and Secondary Schools”, https://www.microcapital.org/microcapital-brief-australia-funds-financial-education-curriculum-development-project-fined-to-serve-fijis-primary-and-secondary-schools/

MicroCapital Universe Profile: Good Shepherd Microfinance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Good+Shepherd+Microfinance

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at  https://www.microcapital.org/products-page/

 

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