BANK CUSTOMERS TO REAP BENEFITS OF SELF REGULATION Banking Code Review Complete Sydney, 8 October 2001:The Australian Bankers’ Association (ABA) has welcomed Independent Reviewer Richard Viney’s final report on the Code of Banking Practice, saying the banks’ adoption will lead to responsible self regulation that will benefit Australian bank customers. David Bell, Chief Executive of the ABA, said: “Our second generation Banking Code will be an effective demonstration to Governments that self regulation works, and is a real alternative to the heavy hand of legislation.” “This Code also demonstrates the banks’ commitment to self regulation as the principles governing the relationships with their customers were subject to a rigorous study by an Independent reviewer. “The banks’ response to Mr Viney’s review and recommendations leaves no doubt that the banking industry can adapt to changes that provide increased protection and fair outcomes.” Mr Bell said key changes to the Code will see: Consultative community forum created leading to improved communication between the ABA, consumer, community groups and regulators; Banks promising to act fairly and reasonably towards their customers; A widening of the scope of the Code to cover small business and an extended range of banking services; Independent, transparent monitoring of Code compliance and banks being accountable for breaches of the Code; Bank credit card conditions informing customers about chargeback rights; Improved disclosure including to prospective bank customers; Greater pre-contractual disclosure for intending guarantors so they can better understand the risk of giving the guarantee; More information about banks’ complaints handling procedures and timeframes for resolving complaints; With a customer’s agreement, banks will try and help with financial difficulties regarding their bank loans. “ABA will now set up an appropriate consultative process for drafting the new provisions into the Code which will include community and regulator representatives.” “We are looking forward to the new Code being finalised and released in the New Year,” said Mr. Bell. “ABA also wishes to commend Mr Viney on his Final Report and for his strong commitment to independence in producing a report of such significance for both banks and their customers.” Note for editors: Timeline - Review of the Code of Banking Practice   May 2000 July 2000 March 2001 July 2001 Early September 2001 October 2001 First half 2002 Launch of Review Closing date for submissions on the code (some extra time allowed) Independent Reviewer produced Issues paper Closing date for submissions on the Code (some extra time allowed for consultation) ABA response to Issues Paper Independent Reviewer Final Report due Second generation Code launched The Reviewer’s final report can be found on the Review of the Code of Banking Practice website: www.reviewbankcode.com For Further Information Contact:   Heather Wellard ABA PR Phone: 02 8298 0411 Mobile: 0409 830 439   ENDS