Response

(Publication date)

In the context of an exchange that occurred during the House of Representatives’ Standing Committee on Economics’ hearing with the Reserve Bank Governor and the Member for Mackellar on 14 August 2020:

Mr FALINSKI: And I congratulate you for drawing attention to something that people have deliberately ignored for too long, but while we're on the point of bad regulations and unintended consequences, we, the federal parliament, introduced not long ago responsible lending obligations, which essentially have the principle that the lender is responsible for decisions that the borrower makes. Is it your evidence to this committee and to the parliament that that law is not having any impact on credit creation and lending to small business and to those enterprises that are taking a risk in starting new enterprises?

Mr Lowe: That's not my evidence. I think it is having an effect. Just to go back to the legislation the parliament passed, which at a very high level is eminently reasonable, it says that, when extending credit, the loan can't be unsuitable—who could argue with that?—and in making the loan you've got to take reasonable steps that the borrower can repay. Well, who could disagree with those two broad principles? I find it very hard to disagree with them. What has happened is that those principles have turned into hundreds of pages of guidance. Once the compliance people, the lawyers, the regulators and the media get involved, these high-level principles put in law get turned into a lot of guidance, because people don't want to offend these kinds of regulatory requirements.

Mr FALINSKI: Can I humbly put it to you that you're being very generous. Wasn't it the interpretation of the courts, until the recent ASIC v Westpac case, that what this actually did was put the obligations back on lenders to understand absolutely and completely the capacity of borrowers to service a loan? That's why it turned into hundreds of pages and, when this was tested before the courts, especially the lower courts, that's what they found. I guess that's why we say the principle makes sense but the unintended consequence was that it restricted lending in the Australian capital markets.

Mr Lowe: I agree with you. I think the principles in the legislation are sound, but I think the way we've translated those principles into reality needs looking at again. If we can't do that properly, maybe we need to look at the legislation. We can't have a world in which, if a borrower can't repay the loan, it's always the bank's fault. On a portfolio basis, we want banks to make some loans that actually go bad, because if a bank never makes a loan that goes bad it means it's not extending enough credit. The pendulum has probably swung a bit too far to blaming the bank if a loan goes bad, because the bank didn't understand the customer; if it had done proper due diligence—this is the mindset of some—the bank would never have made the loan. So some of the banks have had this mindset, 'Well, we can't make loans that go bad.' I would have to say, though, that in the past three or four months I've heard fewer concerns from the banks about the responsible lending laws. ASIC introduced new guidance. Institutions are gradually coming to grips with those.

Mr FALINSKI: That might be because, under the extraordinary powers we granted the Treasurer, he has given them relief from RLOs.

(a) Can you advise whether the Governor of the Reserve Bank of Australia’s views reflect that of your institution?

(b) Do you agree with the principles established in legislation on responsible lending obligations? If not, which principles and why?

(c) Are there any principles in the legislation that you believe could be amended or replaced that would better enable banks to provide credit?

(d) Do you agree with ASIC’s guidance notes for the implementation of responsible lending obligations? If not, which sections do you disagree with, and why?

(e) Are there any sections in ASIC’s guidance notes for the implementation of responsible lending obligations that could be amended or replaced that would better enable banks to provide credit?

(f) Do you agree with APRA’s guidance notes for the implementation of responsible lending obligations? If not, which sections do you disagree with, and why?

(g) Are there any sections in APRA’s guidance notes for the implementation of responsible lending obligations that could be amended or replaced that would better enable banks to provide credit?

(h) Have there been any unintended consequences resulting from the rulings of courts or tribunals that applied strict interpretations of responsible lending obligations?

Hansard p. 7

1 July 2021

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(16 June 2020)
(PDF78KB)

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(4 June 2020)
(PDF320KB)

Regarding principal and interest mortgages:

(a)How many do you currently provide, and what is their total dollar value?

(b) What is their percentage of your total mortgage products provided?

(c) When the board decides to cut interest rates is the reductionautomatically passed through to mortgage holders through lowerrepayments, or when the board decides to cut interest rates is the reduction in repayments only passed through on request of theholder with the gap paying off additional principal?

(d) If the latter, how many mortgage holders have requested areduction in repayments as a percentage of principal and interestmortgage holders?

(e) For the last two rate cuts, what was the aggregate dollar value reduction in interest repayments compared to each previous month?

Regarding interest-only mortgages:

(a) How many do you currently provide, and what is their nominalvalue?

(b) What is their percentage of your total mortgage products provided?

(c) For the last two rate cuts, what was the aggregate dollar value reduction in interest repayments compared to each previousmonth?

Regarding interest-bearing deposits:

(a) How many deposits are currently held, and what is their aggregate value?

(b) For deposits held, what was their aggregate dollar value in each ofthe last six months?

(c)For interest payments, what was the dollar value paid in each of the last six months?

(d) What has been the reduction in interest payments resulting from the last two interest rate cuts?

Over the past six months can you please outline for each month:

(a) The standard variable interest rate(s) for a principal and interestmortgage

(b) The standard variable rate(s) for an interest only mortgage

(c) The standard fixed interest rate(s) for a principal and interestmortgage

(d) The standard fixed rate(s) for an interest only mortgage

(e) The interest rate(s) for term deposits

(f) The interest rate(s) for any other interest-bearing deposit products.

(PDF111KB)

Attachment
(PDF1,609KB)

With reference to the bank’s payment term policy or policies that the bank applies to its suppliers of goods and services, and customers of its goods and services:

(a) whether they are consistent between the purchase and sale of goods and services?

(b) in reference to (a), if not, why not?

(c) in reference to (a), if not, will the bank bring them into consistency?

A copy of the valuation policies that the bank applies to:

(a) infrastructure investments.

(b) large commercial investments or like commercial investments, including definitions that lead to their classification as a large commercial or like commercial investments

Whether the valuations on infrastructure investments finances by the bank are:

(a) independently completed?

(b) whether they are completed and/or reviewed annually?

(c) in reference to (b), if they are reviewed by whom?

(d) in reference to (b), if not annually, how often, the trigger, and the average timeframe between review?

Whether the valuations on large commercial investments or like large commercial investments financed by the bank are:

(a) independently completed?

(b) whether they are completed and/or reviewed annually?

(c) in reference to (b), if they are reviewed by whom?

(d) in reference to (b), if not annually, how often, the trigger, and the average timeframe between review?

CHAIR: …. Are you a member of the Australian Business Growth Fund?

Mr Frazis: No.

CHAIR: Why is that?

Mr Frazis: We haven't considered being a member of that, but that's something we'll take on consideration.

CHAIR: So you'll take it on consideration and you might report back to us about that?

Mr Frazis: Yes, we will do that.

Hansard p. 37

29 November 2019

CHAIR: … Do you provide merchant services?

Mr Frazis: That part of our business is outsourced to another provider. We don't do it directly.

CHAIR: Who is that?

Mr Frazis: I'd have to take that on notice. That detail I don't know.

CHAIR: So the bank doesn't know who their merchant services are outsourced to?

Mr McAnalen: Sorry, we will need to take that on notice. It has only been a recent occurrence.

Hansard p. 37

29 November 2019

CHAIR: … Do you provide merchant services?

Mr Frazis: That part of our business is outsourced to another provider. We don't do it directly.

CHAIR: Who is that?

Mr Frazis: I'd have to take that on notice. That detail I don't know.

CHAIR: So the bank doesn't know who their merchant services are outsourced to?

Mr McAnalen: Sorry, we will need to take that on notice. It has only been a recent occurrence.

Hansard p. 41

29 November 2019

Mr CRAIG KELLY: How many cases do you currently have with the Australian Financial Complaints Authority?

Mr Frazis: We currently have 65 cases with AFCA.

Mr CRAIG KELLY: Do you know the estimate average value of those cases?

Mr Frazis: I will have to take that on notice …

Hansard p. 41

29 November 2019

Mr CRAIG KELLY: Aside from that, do you have any other cases currently on foot in federal or state supreme courts which are disputes over a business loan?

Mr Frazis: We have three cases where customers are taking us to court. Is that what you meant?

Mr CRAIG KELLY: Yes. How far back in time do they go?

Mr Frazis: I'll have to take that on notice.

Hansard p. 41

29 November 2019

Mr CRAIG KELLY: …Why are those cases in the supreme or federal courts rather than at the Financial Complaints Authority?

Mr Frazis: On those three cases, it's the choice of the customer to take us to court, as opposed to—

Mr CRAIG KELLY: Was it because the amount of the dispute was above the threshold for the Financial Complaints Authority?

Mr Frazis: I will have to take that on notice.

Hansard p. 42

29 November 2019

Dr MULINO: … Thank you for the information you've given on the size of the AML/CTF team and the fraud team. It would be great to get a breakdown of a headcount by AML/CTF, fraud and other related areas of risk in IT, and also trends in those over the last five to 10 years, to get a sense of where those are headed—and also in terms of dollars invested. Obviously the headcount is one measure, but you'd imagine there would be an IT and data analysis challenge as well in a number of those tasks.

Mr Frazis: We are happy to take that on notice. You are right in the sense that both the headcount and the investment, and the cost, have increased over that time. My sense is that they will continue to increase.

Hansard p. 44

29 November 2019

Dr MULINO: I think the deputy chair raised some questions around the case of Ms Riches, but I'm interested in the case of agribusiness or cases such as Ms Riches, are there specific procedural changes that have been made post royal commission?

Mr Frazis: Those are very good questions…

Dr MULINO: Any specifics that you are able to provide on the procedural changes would be appreciated.

Mr Frazis: We are happy to take that on notice.

Hansard pp. 44-45

29 November 2019

Dr MULINO: … Do you adopt a model litigant approach?

Mr Frazis: …

Dr MULINO: In terms of the legacy cases?

Mr Frazis: If they're on foot at the moment—

Dr MULINO: On foot, I missed that—yes, sorry. Do you have a statement that you could provide us with those principles?

Mr Frazis: Absolutely. I can provide that.

Hansard p. 45

29 November 2019

(PDF233KB)

Attachment
(PDF343KB)

Anti-money laundering:

(a) Can you please provide a copy of your anti-money laundering, or like, policy?

(b) How many cases have you reported to AUSTRAC over the past decade?

(c) Of those cases, how many relate to:

(i) money laundering?

(ii) terrorist financing?

(iii) organised crime?

(iv) human trafficking?

(v) child exploitation?

(vi) crimes of a sexual nature?

(vii) other serious crimes not captured by (i) – (vi)?

(d) Can you please provide an update on your initiatives, including details of programs, staff numbers and financial resources toward initiatives to combat:

(i) money laundering?

(ii) terrorist financing?

(iii) organised crime?

(iv) human trafficking?

(v) child exploitation?

(vi) crimes of a sexual nature?

(vii) other serious crimes not captured by (i) – (vi)?

(e) How frequently have you reported to AUSTRAC on a scheduled basis over the past decade?

(f) Please outline the occasions you have reported to AUSTRAC on an ad hoc basis over the past decade?

(g) Over the past decade, how many AUSTRAC investigations into the bank have been:

(i) opened

(ii) completed with penalties

(iii) completed without penalties

(iv) abandoned

(h) How many fines have been paid to AUSTRAC over the past decade, and what were their values?

(i) Have any AUSTRAC notifications or investigations resulted in terminations of employment or other penalties for employees?

(j) Have any AUSTRAC notifications or investigations resulted in terminations of employment or other penalties for executives?

(k) What staff training is provided to assist anti-money laundering and other serious crime detection?

Merchant facilities and low cost routing:

(a) Do you provide merchant facilities, and if so, to how many customers?

(b) Would your small and medium business customers save money if they moved to low cost routing, and if so, do you actively encourage customers to switch?

(c) If so, how do you encourage small and medium business customers to switch to low cost routing?

(d) Do you think all small and medium business customers should be on low cost routing?

(e) What are the fee structures for different merchant services available, including low cost routing options?

(f) What is the annual revenue received from total merchant services each year over the past five years?

(g) What is the annual revenue received from small and medium business merchant services over the past decade?

(h) What number and share (percentage of total) of merchant services for all customers:

(i) use low cost routing?

(ii) provide access to low cost routing?

(iii) of those that provide it, default to low cost routing?

(iv) require automated software upgrades to access low cost routing, have they been provided, and what is the rollout schedule and deadline where it has not been provided?

(v) require a user requested software upgrade to access low cost routing, and what has been the uptake?

(vi) require a hardware upgrade to access low cost routing, and how many remain?

(vii) do not provide access to low cost routing?

(viii) and what is the rollout schedule for low cost routing and the deadline where low cost routing has not been provided?

(i) What number and share (percentage of total) of merchant services for small and medium business customers:

(i) use low cost routing?

(ii) provide access to low cost routing?

(iii) of those that provide it, default to low cost routing?

(iv) require automated software upgrades to access low cost routing, have they been provided, and what is the rollout schedule and deadline where it has not been provided?

(v) require a user requested software upgrade to access low cost routing, and what has been the uptake?

(vi) require a hardware upgrade to access low cost routing, and how many remain?

(vii) do not provide access to low cost routing?

(viii) and what is the rollout schedule for low cost routing and the deadline where low cost routing has not been provided?

Westpac has publicly stated that it will defer repayments on credit cards for COVID-19 affected customers (Westpac Freezes Credit Card Charges for COVID-19 hit customers, The Age, 24 April 2020). Therefore, can you please advise:

(a) What processes do you have in place to identify credit card customers who have been impacted by the COVID-19 pandemic?

(b) How many credit card customers have requested deferrals of repayments related to the COVID-19 pandemic?

(c) How many credit card customers have you identified as impacted by the COVID 19 pandemic?

(d) For those credit card customers that you have identified as impacted by the COVID-19 pandemic:

(i) What is the accumulated value of the credit card debt?

(ii) What is the average value of the credit card debt?

(iii) What is the accumulated value of the credit card limit?

(iv) What is the average value of the credit card limit?

(v) What is the accumulated value of the credit card monthly repayments?

(vi) What is the average value of the credit card monthly repayments?

(e) What deferral options are available for credit card customers that you have identified as impacted by the COVID-19 pandemic?

(i) If none, do you intend on doing so?

Home loan approval timeframes
For all home loan applications you have received in the quarter ending 31 March 2021 (regardless of whether the application was settled):

(a) What is the average and median time from receipt of application by the bank to final approval, for applications received directly through your branch network?

(b) What is the average and median time from receipt of application by the bank to final approval, for applications received through a mortgage broker?

(c) If there is a difference in average and median time from receipt by the bank to approval for applications received through the branch network compared to the those received through a mortgage broker:

(i) What is the reason for the difference?
(ii) How might this impact the competitiveness of mortgage brokers?
(iii) What is the bank doing to equalise the difference in times?

(d) Is an application received through the branch network processed differently from an application received through a mortgage broker? If so:

(i) What is the reason for the difference?
(ii) Is this difference informed by bank policy? If so, why?

Hansard p. 11

1 July 2021

Hansard pp. 11-12

1 July 2021

Hansard pp. 12-13

1 July 2021

Hansard p. 14

1 July 2021

Hansard p. 15

1 July 2021

Hansard p. 16

1 July 2021

(2 September 2021)
(PDF530KB)

For the past five years, please advise:

(a) the number and percentage of total mortgages for principal places of residence that are:

(i) variable only
(ii) variable and fixed
(iii) fixed only

(b) the number and percentage of total mortgages for investment properties that are:

(i) variable only
(ii) variable and fixed
(iii) fixed only

Since March 2020, please advise:

(a) the number and percentage of new mortgages for principal places of residence that are:

(i) variable only
(ii) variable and fixed
(iii) fixed only

For mortgages that have been fixed since March 2020:

(a) what percentage of new mortgages for principal places of residence were fixed for:

(i) 1 year
(ii) 2 years
(iii) 3 years
(iv) 4 years
(v) 5 years

(b) what percentage of existing mortgages for principal places of residence were fixed for:

(i) 1 year
(ii) 2 years
(iii) 3 years
(iv) 4 years
(v) 5 years

(c) what percentage of new mortgages for investment properties were fixed for:

(i) 1 year
(ii) 2 years
(iii) 3 years
(iv) 4 years
(v) 5 years

(d) what percentage of existing mortgages for investment properties were fixed for:

(i) 1 year
(ii) 2 years
(iii) 3 years
(iv) 4 years
(v) 5 years

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(12 June 2020)
(PDF118KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Regarding principal and interest mortgages:

(a)How many do you currently provide, and what is their total dollar value?

(b) What is their percentage of your total mortgage products provided?

(c) When the board decides to cut interest rates is the reductionautomatically passed through to mortgage holders through lowerrepayments, or when the board decides to cut interest rates is the reduction in repayments only passed through on request of theholder with the gap paying off additional principal?

(d)If the latter, how many mortgage holders have requested areduction in repayments as a percentage of principal and interestmortgage holders?

(e)For the last two rate cuts, what was the aggregate dollar value reduction in interest repayments compared to each previous month?

Regarding interest-only mortgages:

(a)How many do you currently provide, and what is their nominalvalue?

(b) What is their percentage of your total mortgage products provided?

(c)For the last two rate cuts, what was the aggregate dollar value reduction in interest repayments compared to each previousmonth?

Regarding interest-bearing deposits:

(a)How many deposits are currently held, and what is their aggregate value?

(b)For deposits held, what was their aggregate dollar value in each ofthe last six months?

(c)For interest payments, what was the dollar value paid in each of the last six months?

(d)What has been the reduction in interest payments resulting from the last two interest rate cuts?

Over the past six months can you please outline for each month:

(a) The standard variable interest rate(s) for a principal and interestmortgage

(b)The standard variable rate(s) for an interest only mortgage

(c)The standard fixed interest rate(s) for a principal and interestmortgage

(d)The standard fixed rate(s) for an interest only mortgage

(e)The interest rate(s) for term deposits

(f)The interest rate(s) for any other interest-bearing deposit products.

With reference to the bank’s payment term policy or policies that the bank applies to its suppliers of goods and services, and customers of its goods and services:

(a) whether they are consistent between the purchase and sale of goods and services?

(b) in reference to (a), if not, why not?

(c) in reference to (a), if not, will the bank bring them into consistency?

A copy of the valuation policies that the bank applies to:

(a) infrastructure investments.

(b) large commercial investments or like commercial investments, including definitions that lead to their classification as a large commercial or like commercial investments.

Whether the valuations on infrastructure investments finances by the bank are:

(a) independently completed?

(b) whether they are completed and/or reviewed annually?

(c) in reference to (b), if they are reviewed by whom?

(d) in reference to (b), if not annually, how often, the trigger, and the average timeframe between review?

Whether the valuations on large commercial investments or like large commercial investments financed by the bank are:

(a) independently completed?

(b) whether they are completed and/or reviewed annually?

(c) in reference to (b), if they are reviewed by whom?

(d) in reference to (b), if not annually, how often, the trigger, and the average timeframe between review?

CHAIR: … Just for clarity, because I know we've talked about it a bit already, have you had any AUSTRAC fines, say, over the past decade?

Ms Baker: In the past decade?

CHAIR: Over the past five years or past two years?

Ms Baker: Not that I'm aware of.

CHAIR: You can take it on notice and come back to us.

Ms Baker: Yes.

CHAIR: Have you self-reported anything to AUSTRAC?

Ms Baker: I'm sure we have self-reported things to AUSTRAC.

CHAIR: Could you give us an example?

Ms Baker: I don't have any but—

CHAIR: You can take it on notice and come back to us, that's fine.

Ms Baker: Yes, will do.

Hansard p. 33

29 November 2019

Dr MULINO: It's not always easy to compare on a simple apples-to-apples basis, but of the 7,500, how many would you characterise as being in AML/CTF, in risk and in IT, in broad terms?

Ms Baker: In risk? All of them.
…
Ms Baker: But the team itself—yes, we have a risk team under the chief risk officer. There is an operational risk team. I'm not exactly sure how many are in that team but I can clarify that number.

Dr MULINO: Could you take that on notice. And what about AML/CTF?
…
Dr MULINO: It would be good to get a breakdown of some of the key areas.

Ms Baker: Yes. We can do that.

Dr MULINO: The other aspects of that that I would be interested in—and it sounds like it would be on notice—would be the trend over time.

Hansard p. 30

29 November 2019

Dr MULINO: … You mentioned that you are a member of the Australian Business Growth Fund.

Ms Baker: Yes.

Dr MULINO: Are you aware of how much you've contributed to that?

Ms Baker: No, and I don't have the details.

CHAIR: You could take that on notice.

Dr MULINO: Sorry, I didn't realise you'd been asked that specific question.

CHAIR: But you'll take that on notice?

Ms Baker: Yes, I will.

Hansard p. 31

29 November 2019

Dr MULINO: It will be interesting, over time, to see the results of those processes post royal commission compared to pre royal commission to see if those new systems are actually leading to a material change. It would be great to get any information on pre and post comparison if that's possible at this stage.

Ms Gartmann: Sure, I'm happy to provide that.

Hansard p. 31

29 November 2019

Merchant facilities and low cost routing:

(a) Do you provide merchant facilities, and if so, to how many customers?

(b) Would your small and medium business customers save money if they moved to low cost routing, and if so, do you actively encourage customers to switch?

(c) If so, how do you encourage small and medium business customers to switch to low cost routing?

(d) Do you think all small and medium business customers should be on low cost routing?

(e) What are the fee structures for different merchant services available, including low cost routing options?

(f) What is the annual revenue received from total merchant services each year over the past five years?

(g) What is the annual revenue received from small and medium business merchant services over the past decade?

(h) What number and share (percentage of total) of merchant services for all customers:

(i) use low cost routing?

(ii) provide access to low cost routing?

(iii) of those that provide it, default to low cost routing?

(iv) require automated software upgrades to access low cost routing, have they been provided, and what is the rollout schedule and deadline where it has not been provided?

(v) require a user requested software upgrade to access low cost routing, and what has been the uptake?

(vi) require a hardware upgrade to access low cost routing, and how many remain?

(vii) do not provide access to low cost routing?

(viii) and what is the rollout schedule for low cost routing and the deadline where low cost routing has not been provided?

(i) What number and share (percentage of total) of merchant services for small and medium business customers:

(i) use low cost routing?

(ii) provide access to low cost routing?

(iii) of those that provide it, default to low cost routing?

(iv) require automated software upgrades to access low cost routing, have they been provided, and what is the rollout schedule and deadline where it has not been provided?

(v) require a user requested software upgrade to access low cost routing, and what has been the uptake?

(vi) require a hardware upgrade to access low cost routing, and how many remain?

(vii) do not provide access to low cost routing?

(viii) and what is the rollout schedule for low cost routing and the deadline where low cost routing has not been provided?

Westpac has publicly stated that it will defer repayments on credit cards for COVID-19 affected customers (Westpac Freezes Credit Card Charges for COVID-19 hit customers, The Age, 24 April 2020). Therefore, can you please advise:

(a) What processes do you have in place to identify credit card customers who have been impacted by the COVID-19 pandemic?

(b) How many credit card customers have requested deferrals of repayments related to the COVID-19 pandemic?

(c) How many credit card customers have you identified as impacted by the COVID 19 pandemic?

(d) For those credit card customers that you have identified as impacted by the COVID-19 pandemic:

(i) What is the accumulated value of the credit card debt?

(ii) What is the average value of the credit card debt?

(iii) What is the accumulated value of the credit card limit?

(iv) What is the average value of the credit card limit?

(v) What is the accumulated value of the credit card monthly repayments?

(vi) What is the average value of the credit card monthly repayments?

(e) What deferral options are available for credit card customers that you have identified as impacted by the COVID-19 pandemic?

(i) If none, do you intend on doing so?

Response

(Publication date)

Westpac has publicly stated that it will defer repayments on credit cards for COVID-19 affected customers (Westpac Freezes Credit Card Charges for COVID-19 hit customers, The Age, 24 April 2020). Therefore, can you please advise:

(a) What processes do you have in place to identify credit card customers who have been impacted by the COVID-19 pandemic?

(b) How many credit card customers have requested deferrals of repayments related to the COVID-19 pandemic?

(c) How many credit card customers have you identified as impacted by the COVID 19 pandemic?

(d) For those credit card customers that you have identified as impacted by the COVID-19 pandemic:

(i) What is the accumulated value of the credit card debt?

(ii) What is the average value of the credit card debt?

(iii) What is the accumulated value of the credit card limit?

(iv) What is the average value of the credit card limit?

(v) What is the accumulated value of the credit card monthly repayments?

(vi) What is the average value of the credit card monthly repayments?

(e) What deferral options are available for credit card customers that you have identified as impacted by the COVID-19 pandemic?

(i) If none, do you intend on doing so?

(30 June 2020)
(PDF80KB)

Hansard pp. 19-20

1 July 2021

Hansard p. 21

1 July 2021

Hansard p. 23

1 July 2021

Response

(Publication date)

A copy of the bank’s payment term policy or policies.

With reference to the bank’s payment term policy or policies that the bank applies to its suppliers of goods and services, and customers of its goods and services:

(a) whether they are consistent between the purchase and sale of goods and services?

(b) in reference to (a), if not, why not?

(c) in reference to (a), if not, will the bank bring them into consistency?

A copy of the valuation policies that the bank applies to:

(a) infrastructure investments.

(b) large commercial investments or like commercial investments, including definitions that lead to their classification as a large commercial or like commercial investments

Whether the valuations on infrastructure investments finances by the bank are:

(a) independently completed?

(b) whether they are completed and/or reviewed annually?

(c) in reference to (b), if they are reviewed by whom?

(d) in reference to (b), if not annually, how often, the trigger, and the average timeframe between review?

Whether the valuations on large commercial investments or like large commercial investments financed by the bank are:

(a) independently completed?

(b) whether they are completed and/or reviewed annually?

(c) in reference to (b), if they are reviewed by whom?

(d) in reference to (b), if not annually, how often, the trigger, and the average timeframe between review?

Dr LEIGH: What do you tell them? If I am a Citi credit card customer, am I informed relative to the benchmark exchange rate how much more I will be paying?
…

Dr LEIGH: … Customers would typically like to know the spread and, ideally, they would like to know that spread before they put their credit card down. If you could come back to me on the details of that, that would be terrific.

Mr Machet: No problem.

Hansard p. 61

29 November 2019

CHAIR: Okay. No class actions?

Mr Luet: We have one class action. I think that has been started. It's on an FX issue. From memory, the plaintiff still has to build their case entirely by the beginning of next year or the first quarter next year. So it's in the very initial stages of the process.

CHAIR: It's related to foreign exchange?
Mr Luet: It relates to foreign exchange but for transactions that have been done offshore, so this is not about Citi in Australia; this is about transactions that have been done offshore.

CHAIR: I'm confused.

Mr Luet: That's the way the case was built. I can come back to you on notice and provide more details.

Hansard p. 67

29 November 2019

Anti-money laundering:

(a) Can you please provide a copy of your anti-money laundering, or like, policy?

(b) How many cases have you reported to AUSTRAC over the past decade?

(c) Of those cases, how many relate to:

(i) money laundering?

(ii) terrorist financing?

(iii) organised crime?

(iv) human trafficking?

(v) child exploitation?

(vi) crimes of a sexual nature?

(vii) other serious crimes not captured by (i) – (vi)?

(d) Can you please provide an update on your initiatives, including details of programs, staff numbers and financial resources toward initiatives to combat:

(i) money laundering?

(ii) terrorist financing?

(iii) organised crime?

(iv) human trafficking?

(v) child exploitation?

(vi) crimes of a sexual nature?

(vii) other serious crimes not captured by (i) – (vi)?

(e) How frequently have you reported to AUSTRAC on a scheduled basis over the past decade?

(f) Please outline the occasions you have reported to AUSTRAC on an ad hoc basis over the past decade?

(g) Over the past decade, how many AUSTRAC investigations into the bank have been:

(i) opened

(ii) completed with penalties

(iii) completed without penalties

(iv) abandoned

(h) How many fines have been paid to AUSTRAC over the past decade, and what were their values?

(i) Have any AUSTRAC notifications or investigations resulted in terminations of employment or other penalties for employees?

(j) Have any AUSTRAC notifications or investigations resulted in terminations of employment or other penalties for executives?

(k) What staff training is provided to assist anti-money laundering and other serious crime detection?

Merchant facilities and low cost routing:

(a) Do you provide merchant facilities, and if so, to how many customers?

(b) Would your small and medium business customers save money if they moved to low cost routing, and if so, do you actively encourage customers to switch?

(c) If so, how do you encourage small and medium business customers to switch to low cost routing?

(d) Do you think all small and medium business customers should be on low cost routing?

(e) What are the fee structures for different merchant services available, including low cost routing options?

(f) What is the annual revenue received from total merchant services each year over the past five years?

(g) What is the annual revenue received from small and medium business merchant services over the past decade?

(h) What number and share (percentage of total) of merchant services for all customers:

(i) use low cost routing?

(ii) provide access to low cost routing?

(iii) of those that provide it, default to low cost routing?

(iv) require automated software upgrades to access low cost routing, have they been provided, and what is the rollout schedule and deadline where it has not been provided?

(v) require a user requested software upgrade to access low cost routing, and what has been the uptake?

(vi) require a hardware upgrade to access low cost routing, and how many remain?

(vii) do not provide access to low cost routing?

(viii) and what is the rollout schedule for low cost routing and the deadline where low cost routing has not been provided?

(i) What number and share (percentage of total) of merchant services for small and medium business customers:

(i) use low cost routing?

(ii) provide access to low cost routing?

(iii) of those that provide it, default to low cost routing?

(iv) require automated software upgrades to access low cost routing, have they been provided, and what is the rollout schedule and deadline where it has not been provided?

(v) require a user requested software upgrade to access low cost routing, and what has been the uptake?

(vi) require a hardware upgrade to access low cost routing, and how many remain?

(vii) do not provide access to low cost routing?

(viii) and what is the rollout schedule for low cost routing and the deadline where low cost routing has not been provided?

Westpac has publicly stated that it will defer repayments on credit cards for COVID-19 affected customers (Westpac Freezes Credit Card Charges for COVID-19 hit customers, The Age, 24 April 2020). Therefore, can you please advise:

(a) What processes do you have in place to identify credit card customers who have been impacted by the COVID-19 pandemic?

(b) How many credit card customers have requested deferrals of repayments related to the COVID-19 pandemic?

(c) How many credit card customers have you identified as impacted by the COVID 19 pandemic?

(d) For those credit card customers that you have identified as impacted by the COVID-19 pandemic:

(i) What is the accumulated value of the credit card debt?

(ii) What is the average value of the credit card debt?

(iii) What is the accumulated value of the credit card limit?

(iv) What is the average value of the credit card limit?

(v) What is the accumulated value of the credit card monthly repayments?

(vi) What is the average value of the credit card monthly repayments?

(e) What deferral options are available for credit card customers that you have identified as impacted by the COVID-19 pandemic?

(i) If none, do you intend on doing so?

Merchant services and low cost routing:

(a) In terms of your Point of Sale (POS) strategic merchant services:

(i) What is the total number of your POS strategic merchant services customers?

(ii) What is the number small and medium business customers?

(b) What number and share (percentage of total) of your total strategic merchant services customers and the number and share of small and medium business merchant services customers:

(i) Use the Least Cost Routing (LCR) or Merchant Choice Routing (MRC) option for multi-network debit transactions?

(ii) Have a contract for the lowest cost routing option, when including all fees associated with the transaction including interchange and scheme fees?

(c) Is LCR or MCR on multi-network debit transactions offered to all customers as an opt-out option to ensure all get access to savings? If not:

(i) Why?

(ii) Considering that the Reserve Bank of Australia has advocated LCR since 2013, why have you not found a way provide this service and the associated cost savings to all of your merchant services customers?

(iii) Do you believe you are acting in your merchants’ best interests by not passing on possible savings?

(d) Are LCR or MCR services offered on all terminal types for multi-network debit transactions? If not:

(i) Which terminal types do not have LCR or MCR?

(ii) What percentage of your terminal fleet does this represent?

(iii) When do you plan to upgrade those terminal types that do not have LCR or MCR to enable those merchants with those terminal types to access LCR or MCR?

(e) Are LCR or MCR services offered on all pricing plans for multi-network debit transactions? If not:

(i) Which pricing plans do not have LCR or MCR as an option?

(ii) What percentage of your small and medium business merchant customers are on these plans?

(iii) Why?

(f) If you provided all your strategic and small and medium business POS merchant services customers access to the lowest cost scheme on all multi-network debit transactions, what would the savings be for:

(i) Your strategic merchants customers?

(ii) Your remainder of medium and small business merchant customers?

(g) If you passed on at POS the lowest cost per transaction via dynamic routing to your merchants, based upon current and eftpos 1 July 2020 pricing, what would the savings be for:

(i) Your strategic merchants customers?

(ii) Your remainder of medium and small business merchant customers?

(h) Are any additional fees or charges, such as terminal rental, added or increased for small and medium business merchant customers who elect to implement LCR or MCR?

(i) If so, why?

(ii) Do you increase the average eftpos transaction fee for customers who choose to use LCR or MCR compared to other plans? Why?

(iii) Does a customer’s choice to use LCR or MCR for debit transactions impact the fees you charge for credit transactions for any of your merchant customers? Why?

 

Acquiring merchant facilities:

(a) Please provide details for debit transactions through your Acquiring merchant facilities for calendar year 2019 and calendar year 2020 (to date) including:

(i) The total number?

(ii) In dollar terms?

(iii) Total fees received by the bank?

(b) Please provide details for debit transactions through your Acquiring merchant facilities for financial year 2018/2019 and financial year 2019/2020 (to date):

(i) The total number?

(ii) In dollar terms?

(iii) Total fees received by the bank?

(c) Please outline the schemes that provide debit card payments services currently contracted by the bank, including:

(i) The name of the card payments service provider.

(ii) The length of their current contract.

(iii) How far through the contract the bank currently is.

(iv) How much of the contract remains.

(v) Whether the contract involves the provision of card payments with debit, credit or other products.

(vi) Whether the contract applies incentive payment arrangements based on volume of processed transactions or other performance criteria per payment type or as an aggregate volume.

(vii) Details of the ‘profit’ or ‘premium’ charged to the business between the cost of the transaction fees charged to the acquiring bank by various schemes, and the transaction fees charged to small and medium business customers by the acquiring bank, including interchange, scheme fees, acquirer margin and terminal rental.

For each provider, provide the following information based on the method of calculation for each merchant category type in your debit Acquiring portfolio:

(a) Contracted provider (e.g. Visa)

(b) Interchange fee (e.g. 0.04 per transaction)

(c) Scheme fee based on an $40 transaction (e.g. $0.01 per transaction for first twenty transactions, then $0.02 for every transaction thereafter)

(d) Acquirer costs and margin (e.g. 1 per cent of transaction)

(e) Any other cost (i.e. any fee not listed above)

(f) Any ‘profit’ or ‘premium’ charged in addition by the bank that is passed onto the merchant (i.e. any fee not listed above)

(g) What is the total retail cost charged to merchant customers for each merchant category and each debit scheme, not including volume incentive payments for the following transactions:

(i) $5

(ii) $20

(iii) $40

(iv) $100

(v) $1,000

(h) What is the total Acquiring wholesale cost for each merchant category and each debit scheme, not including volume incentive payments for the following transactions?

(i) $5

(ii) $20

(iii) $40

(iv) $100

(v) $1,000

Home loan approval timeframes
For all home loan applications you have received in the quarter ending 31 March 2021 (regardless of whether the application was settled):

(a) What is the average and median time from receipt of application by the bank to final approval, for applications received directly through your branch network?

(b) What is the average and median time from receipt of application by the bank to final approval, for applications received through a mortgage broker?

(c) If there is a difference in average and median time from receipt by the bank to approval for applications received through the branch network compared to the those received through a mortgage broker:

(i) What is the reason for the difference?
(ii) How might this impact the competitiveness of mortgage brokers?
(iii) What is the bank doing to equalise the difference in times?

(d) Is an application received through the branch network processed differently from an application received through a mortgage broker? If so:

(i) What is the reason for the difference?
(ii) Is this difference informed by bank policy? If so, why?

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(10 June 2020)
(PDF78KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Westpac has publicly stated that it will defer repayments on credit cards for COVID-19 affected customers (Westpac Freezes Credit Card Charges for COVID-19 hit customers, The Age, 24 April 2020). Therefore, can you please advise:

(a) What processes do you have in place to identify credit card customers who have been impacted by the COVID-19 pandemic?

(b) How many credit card customers have requested deferrals of repayments related to the COVID-19 pandemic?

(c) How many credit card customers have you identified as impacted by the COVID 19 pandemic?

(d) For those credit card customers that you have identified as impacted by the COVID-19 pandemic:

(i) What is the accumulated value of the credit card debt?

(ii) What is the average value of the credit card debt?

(iii) What is the accumulated value of the credit card limit?

(iv) What is the average value of the credit card limit?

(v) What is the accumulated value of the credit card monthly repayments?

(vi) What is the average value of the credit card monthly repayments?

(e) What deferral options are available for credit card customers that you have identified as impacted by the COVID-19 pandemic?

(i) If none, do you intend on doing so?

(1 July 2020)
(PDF150KB)

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(18 August 2020)
(PDF325KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(16 June 2020)
(PDF331KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(16 June 2020)
(PDF312KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Westpac has publicly stated that it will defer repayments on credit cards for COVID-19 affected customers (Westpac Freezes Credit Card Charges for COVID-19 hit customers, The Age, 24 April 2020). Therefore, can you please advise:

(a) What processes do you have in place to identify credit card customers who have been impacted by the COVID-19 pandemic?

(b) How many credit card customers have requested deferrals of repayments related to the COVID-19 pandemic?

(c) How many credit card customers have you identified as impacted by the COVID 19 pandemic?

(d) For those credit card customers that you have identified as impacted by the COVID-19 pandemic:

(i) What is the accumulated value of the credit card debt?

(ii) What is the average value of the credit card debt?

(iii) What is the accumulated value of the credit card limit?

(iv) What is the average value of the credit card limit?

(v) What is the accumulated value of the credit card monthly repayments?

(vi) What is the average value of the credit card monthly repayments?

(e) What deferral options are available for credit card customers that you have identified as impacted by the COVID-19 pandemic?

(i) If none, do you intend on doing so?

(30 June 2020)
(PDF203KB)

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(12 June 2020)
(PDF32KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Merchant services and low cost routing:

(a) In terms of your Point of Sale (POS) strategic merchant services:

(i) What is the total number of your POS strategic merchant services customers?

(ii) What is the number small and medium business customers?

(b) What number and share (percentage of total) of your total strategic merchant services customers and the number and share of small and medium business merchant services customers:

(i) Use the Least Cost Routing (LCR) or Merchant Choice Routing (MRC) option for multi-network debit transactions?

(ii) Have a contract for the lowest cost routing option, when including all fees associated with the transaction including interchange and scheme fees?

(c) Is LCR or MCR on multi-network debit transactions offered to all customers as an opt-out option to ensure all get access to savings? If not:

(i) Why?

(ii) Considering that the Reserve Bank of Australia has advocated LCR since 2013, why have you not found a way provide this service and the associated cost savings to all of your merchant services customers?

(iii) Do you believe you are acting in your merchants’ best interests by not passing on possible savings?

(d) Are LCR or MCR services offered on all terminal types for multi-network debit transactions? If not:

(i) Which terminal types do not have LCR or MCR?

(ii) What percentage of your terminal fleet does this represent?

(iii) When do you plan to upgrade those terminal types that do not have LCR or MCR to enable those merchants with those terminal types to access LCR or MCR?

(e) Are LCR or MCR services offered on all pricing plans for multi-network debit transactions? If not:

(i) Which pricing plans do not have LCR or MCR as an option?

(ii) What percentage of your small and medium business merchant customers are on these plans?

(iii) Why?

(f) If you provided all your strategic and small and medium business POS merchant services customers access to the lowest cost scheme on all multi-network debit transactions, what would the savings be for:

(i) Your strategic merchants customers?

(ii) Your remainder of medium and small business merchant customers?

(g) If you passed on at POS the lowest cost per transaction via dynamic routing to your merchants, based upon current and eftpos 1 July 2020 pricing, what would the savings be for:

(i) Your strategic merchants customers?

(ii) Your remainder of medium and small business merchant customers?

(h) Are any additional fees or charges, such as terminal rental, added or increased for small and medium business merchant customers who elect to implement LCR or MCR?

(i) If so, why?

(ii) Do you increase the average eftpos transaction fee for customers who choose to use LCR or MCR compared to other plans? Why?

(iii) Does a customer’s choice to use LCR or MCR for debit transactions impact the fees you charge for credit transactions for any of your merchant customers? Why?

Acquiring merchant facilities:

(a) Please provide details for debit transactions through your Acquiring merchant facilities for calendar year 2019 and calendar year 2020 (to date) including:

(i) The total number?

(ii) In dollar terms?

(iii) Total fees received by the bank?

(b) Please provide details for debit transactions through your Acquiring merchant facilities for financial year 2018/2019 and financial year 2019/2020 (to date):

(i) The total number?

(ii) In dollar terms?

(iii) Total fees received by the bank?

(c) Please outline the schemes that provide debit card payments services currently contracted by the bank, including:

(i) The name of the card payments service provider.

(ii) The length of their current contract.

(iii) How far through the contract the bank currently is.

(iv) How much of the contract remains.

(v) Whether the contract involves the provision of card payments with debit, credit or other products.

(vi) Whether the contract applies incentive payment arrangements based on volume of processed transactions or other performance criteria per payment type or as an aggregate volume.

(vii) Details of the ‘profit’ or ‘premium’ charged to the business between the cost of the transaction fees charged to the acquiring bank by various schemes, and the transaction fees charged to small and medium business customers by the acquiring bank, including interchange, scheme fees, acquirer margin and terminal rental.

(9 July 2020)
(PDF31KB)

Response

(Publication date)

Westpac has publicly stated that it will defer repayments on credit cards for COVID-19 affected customers (Westpac Freezes Credit Card Charges for COVID-19 hit customers, The Age, 24 April 2020). Therefore, can you please advise:

(a) What processes do you have in place to identify credit card customers who have been impacted by the COVID-19 pandemic?

(b) How many credit card customers have requested deferrals of repayments related to the COVID-19 pandemic?

(c) How many credit card customers have you identified as impacted by the COVID 19 pandemic?

(d) For those credit card customers that you have identified as impacted by the COVID-19 pandemic:

(i) What is the accumulated value of the credit card debt?

(ii) What is the average value of the credit card debt?

(iii) What is the accumulated value of the credit card limit?

(iv) What is the average value of the credit card limit?

(v) What is the accumulated value of the credit card monthly repayments?

(vi) What is the average value of the credit card monthly repayments?

(e) What deferral options are available for credit card customers that you have identified as impacted by the COVID-19 pandemic?

(i) If none, do you intend on doing so?

(23 June 2020)
(PDF280KB)

Attachment

(17 August 2020)
(PDF768KB)

Merchant services and low cost routing:

(a) In terms of your Point of Sale (POS) strategic merchant services:

(i) What is the total number of your POS strategic merchant services customers?

(ii) What is the number small and medium business customers?

(b) What number and share (percentage of total) of your total strategic merchant services customers and the number and share of small and medium business merchant services customers:

(i) Use the Least Cost Routing (LCR) or Merchant Choice Routing (MRC) option for multi-network debit transactions?

(ii) Have a contract for the lowest cost routing option, when including all fees associated with the transaction including interchange and scheme fees?

(c) Is LCR or MCR on multi-network debit transactions offered to all customers as an opt-out option to ensure all get access to savings? If not:

(i) Why?

(ii) Considering that the Reserve Bank of Australia has advocated LCR since 2013, why have you not found a way provide this service and the associated cost savings to all of your merchant services customers?

(iii) Do you believe you are acting in your merchants’ best interests by not passing on possible savings?

(d) Are LCR or MCR services offered on all terminal types for multi-network debit transactions? If not:

(i) Which terminal types do not have LCR or MCR?

(ii) What percentage of your terminal fleet does this represent?

(iii) When do you plan to upgrade those terminal types that do not have LCR or MCR to enable those merchants with those terminal types to access LCR or MCR?

(e) Are LCR or MCR services offered on all pricing plans for multi-network debit transactions? If not:

(i) Which pricing plans do not have LCR or MCR as an option?

(ii) What percentage of your small and medium business merchant customers are on these plans?

(iii) Why?

(f) If you provided all your strategic and small and medium business POS merchant services customers access to the lowest cost scheme on all multi-network debit transactions, what would the savings be for:

(i) Your strategic merchants customers?

(ii) Your remainder of medium and small business merchant customers?

(g) If you passed on at POS the lowest cost per transaction via dynamic routing to your merchants, based upon current and eftpos 1 July 2020 pricing, what would the savings be for:

(i) Your strategic merchants customers?

(ii) Your remainder of medium and small business merchant customers?

(h) Are any additional fees or charges, such as terminal rental, added or increased for small and medium business merchant customers who elect to implement LCR or MCR?

(i) If so, why?

(ii) Do you increase the average eftpos transaction fee for customers who choose to use LCR or MCR compared to other plans? Why?

(iii) Does a customer’s choice to use LCR or MCR for debit transactions impact the fees you charge for credit transactions for any of your merchant customers? Why?

Acquiring merchant facilities:

(a) Please provide details for debit transactions through your Acquiring merchant facilities for calendar year 2019 and calendar year 2020 (to date) including:

(i) The total number?

(ii) In dollar terms?

(iii) Total fees received by the bank?

(b) Please provide details for debit transactions through your Acquiring merchant facilities for financial year 2018/2019 and financial year 2019/2020 (to date):

(i) The total number?

(ii) In dollar terms?

(iii) Total fees received by the bank?

(c) Please outline the schemes that provide debit card payments services currently contracted by the bank, including:

(i) The name of the card payments service provider.

(ii) The length of their current contract.

(iii) How far through the contract the bank currently is.

(iv) How much of the contract remains.

(v) Whether the contract involves the provision of card payments with debit, credit or other products.

(vi) Whether the contract applies incentive payment arrangements based on volume of processed transactions or other performance criteria per payment type or as an aggregate volume.

(vii) Details of the ‘profit’ or ‘premium’ charged to the business between the cost of the transaction fees charged to the acquiring bank by various schemes, and the transaction fees charged to small and medium business customers by the acquiring bank, including interchange, scheme fees, acquirer margin and terminal rental.

Hansard p. 32

1 July 2021

Hansard p. 32

1 July 2021

Hansard p. 29

1 July 2021

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(16 June 2020)
(PDF101KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Merchant services and low cost routing:

(a) In terms of your Point of Sale (POS) strategic merchant services:

(i) What is the total number of your POS strategic merchant services customers?

(ii) What is the number small and medium business customers?

(b) What number and share (percentage of total) of your total strategic merchant services customers and the number and share of small and medium business merchant services customers:

(i) Use the Least Cost Routing (LCR) or Merchant Choice Routing (MRC) option for multi-network debit transactions?

(ii) Have a contract for the lowest cost routing option, when including all fees associated with the transaction including interchange and scheme fees? 

(c) Is LCR or MCR on multi-network debit transactions offered to all customers as an opt-out option to ensure all get access to savings? If not:

(i) Why?

(ii) Considering that the Reserve Bank of Australia has advocated LCR since 2013, why have you not found a way provide this service and the associated cost savings to all of your merchant services customers?

(iii) Do you believe you are acting in your merchants’ best interests by not passing on possible savings?

(d) Are LCR or MCR services offered on all terminal types for multi-network debit transactions? If not:

(i) Which terminal types do not have LCR or MCR?

(ii) What percentage of your terminal fleet does this represent?

(iii) When do you plan to upgrade those terminal types that do not have LCR or MCR to enable those merchants with those terminal types to access LCR or MCR?

(e) Are LCR or MCR services offered on all pricing plans for multi-network debit transactions? If not:

(i) Which pricing plans do not have LCR or MCR as an option?

(ii) What percentage of your small and medium business merchant customers are on these plans?

(iii) Why?

(f) If you provided all your strategic and small and medium business POS merchant services customers access to the lowest cost scheme on all multi-network debit transactions, what would the savings be for:

(i) Your strategic merchants customers?

(ii) Your remainder of medium and small business merchant customers?

(g) If you passed on at POS the lowest cost per transaction via dynamic routing to your merchants, based upon current and eftpos 1 July 2020 pricing, what would the savings be for:

(i) Your strategic merchants customers?

(ii) Your remainder of medium and small business merchant customers?

(h) Are any additional fees or charges, such as terminal rental, added or increased for small and medium business merchant customers who elect to implement LCR or MCR?

(i) If so, why?

(ii) Do you increase the average eftpos transaction fee for customers who choose to use LCR or MCR compared to other plans? Why?

(iii) Does a customer’s choice to use LCR or MCR for debit transactions impact the fees you charge for credit transactions for any of your merchant customers? Why?

Acquiring merchant facilities:

(a) Please provide details for debit transactions through your Acquiring merchant facilities for calendar year 2019 and calendar year 2020 (to date) including:

(i) The total number?

(ii) In dollar terms?

(iii) Total fees received by the bank?

(b) Please provide details for debit transactions through your Acquiring merchant facilities for financial year 2018/2019 and financial year 2019/2020 (to date):

(i) The total number?

(ii) In dollar terms?

(iii) Total fees received by the bank?

(c) Please outline the schemes that provide debit card payments services currently contracted by the bank, including:

(i) The name of the card payments service provider.

(ii) The length of their current contract.

(iii) How far through the contract the bank currently is.

(iv) How much of the contract remains.

(v) Whether the contract involves the provision of card payments with debit, credit or other products.

(vi) Whether the contract applies incentive payment arrangements based on volume of processed transactions or other performance criteria per payment type or as an aggregate volume.

(vii) Details of the ‘profit’ or ‘premium’ charged to the business between the cost of the transaction fees charged to the acquiring bank by various schemes, and the transaction fees charged to small and medium business customers by the acquiring bank, including interchange, scheme fees, acquirer margin and terminal rental.

For each provider, provide the following information based on the method of calculation for each merchant category type in your debit Acquiring portfolio:

(a) Contracted provider (e.g. Visa)

(b) Interchange fee (e.g. 0.04 per transaction)

(c) Scheme fee based on an $40 transaction (e.g. $0.01 per transaction for first twenty transactions, then $0.02 for every transaction thereafter)

(d) Acquirer costs and margin (e.g. 1 per cent of transaction)

(e) Any other cost (i.e. any fee not listed above)

(f) Any ‘profit’ or ‘premium’ charged in addition by the bank that is passed onto the merchant (i.e. any fee not listed above)

(g) What is the total retail cost charged to merchant customers for each merchant category and each debit scheme, not including volume incentive payments for the following transactions:

(i) $5

(ii) $20

(iii) $40

(iv) $100

(v) $1,000

(h) What is the total Acquiring wholesale cost for each merchant category and each debit scheme, not including volume incentive payments for the following transactions?

(i) $5

(ii) $20

(iii) $40

(iv) $100

(v) $1,000

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(18 August 2020)
(PDF109KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(16 June 2020)
(PDF413KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Westpac has publicly stated that it will defer repayments on credit cards for COVID-19 affected customers (Westpac Freezes Credit Card Charges for COVID-19 hit customers, The Age, 24 April 2020). Therefore, can you please advise:

 (a) What processes do you have in place to identify credit card customers who have been impacted by the COVID-19 pandemic?

 (b) How many credit card customers have requested deferrals of repayments related to the COVID-19 pandemic?

 (c) How many credit card customers have you identified as impacted by the COVID 19 pandemic?

 (d) For those credit card customers that you have identified as impacted by the COVID-19 pandemic:

(i) What is the accumulated value of the credit card debt?

 (ii) What is the average value of the credit card debt?

 (iii) What is the accumulated value of the credit card limit?

 (iv) What is the average value of the credit card limit?

 (v) What is the accumulated value of the credit card monthly repayments?

 (vi) What is the average value of the credit card monthly repayments?

(e) What deferral options are available for credit card customers that you have identified as impacted by the COVID-19 pandemic?

(i) If none, do you intend on doing so?

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(16 June 2020)
(PDF109KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(9 June 2020)
(PDF72KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(12 June 2020)
(PDF320KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

A copy of the bank’s payment term policy or policies.

(PDF8KB)

Attachment 1
(PDF1,104KB)  

Attachment 2
(PDF1,326KB)

With reference to the bank’s payment term policy or policies that the bank applies to its suppliers of goods and services, and customers of its goods and services:

(a) whether they are consistent between the purchase and sale of goods and services?

(b) in reference to (a), if not, why not?

(c) in reference to (a), if not, will the bank bring them into consistency?

A copy of the valuation policies that the bank applies to:

(a) infrastructure investments.

(b) large commercial investments or like commercial investments, including definitions that lead to their classification as a large commercial or like commercial investments

(PDF8KB)

Attachment
(PDF140KB)

Whether the valuations on infrastructure investments finances by the bank are:

(a) independently completed?

(b) whether they are completed and/or reviewed annually?

(c) in reference to (b), if they are reviewed by whom?

(d) in reference to (b), if not annually, how often, the trigger, and the average timeframe between review?

Whether the valuations on large commercial investments or like large commercial investments financed by the bank are:

(a) independently completed?

(b) whether they are completed and/or reviewed annually?

(c) in reference to (b), if they are reviewed by whom?

(d) in reference to (b), if not annually, how often, the trigger, and the average timeframe between review?

Response

(Publication date)

Westpac has publicly stated that it will defer repayments on credit cards for COVID-19 affected customers (Westpac Freezes Credit Card Charges for COVID-19 hit customers, The Age, 24 April 2020). Therefore, can you please advise:


(a) What processes do you have in place to identify credit card customers who have been impacted by the COVID-19 pandemic?

(b) How many credit card customers have requested deferrals of repayments related to the COVID-19 pandemic?

(c) How many credit card customers have you identified as impacted by the COVID 19 pandemic?

(d) For those credit card customers that you have identified as impacted by the COVID-19 pandemic:

(i) What is the accumulated value of the credit card debt?

(ii) What is the average value of the credit card debt?

(iii) What is the accumulated value of the credit card limit?

(iv) What is the average value of the credit card limit?

(v) What is the accumulated value of the credit card monthly repayments?

(vi) What is the average value of the credit card monthly repayments?

(e) What deferral options are available for credit card customers that you have identified as impacted by the COVID-19 pandemic?

(i) If none, do you intend on doing so?

(16 June 2020)
(PDF39KB)

For each year of the past decade, please provide:

(a) ME Bank’s return on equity.

(b) Number of ME Bank customers.

(c) Number of mortgages ME Bank had on issue on 30 June.

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(12 June 2020)
(PDF72KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(12 June 2020)
(PDF120KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Westpac has publicly stated that it will defer repayments on credit cards for COVID-19 affected customers (Westpac Freezes Credit Card Charges for COVID-19 hit customers, The Age, 24 April 2020). Therefore, can you please advise:

(a) What processes do you have in place to identify credit card customers who have been impacted by the COVID-19 pandemic?

(b) How many credit card customers have requested deferrals of repayments related to the COVID-19 pandemic?

(c) How many credit card customers have you identified as impacted by the COVID 19 pandemic?

(d) For those credit card customers that you have identified as impacted by the COVID-19 pandemic:

(i) What is the accumulated value of the credit card debt?

(ii) What is the average value of the credit card debt?

(iii) What is the accumulated value of the credit card limit?

(iv) What is the average value of the credit card limit?

(v) What is the accumulated value of the credit card monthly repayments?

(vi) What is the average value of the credit card monthly repayments?

(e) What deferral options are available for credit card customers that you have identified as impacted by the COVID-19 pandemic?

(i) If none, do you intend on doing so?

(30 June 2020)
(PDF220KB)

Response

(Publication date)

Westpac has publicly stated that it will defer repayments on credit cards for COVID-19 affected customers (Westpac Freezes Credit Card Charges for COVID-19 hit customers, The Age, 24 April 2020). Therefore, can you please advise:

(a) What processes do you have in place to identify credit card customers who have been impacted by the COVID-19 pandemic?

(b) How many credit card customers have requested deferrals of repayments related to the COVID-19 pandemic?

(c) How many credit card customers have you identified as impacted by the COVID 19 pandemic?

(d) For those credit card customers that you have identified as impacted by the COVID-19 pandemic:

(i) What is the accumulated value of the credit card debt?

(ii) What is the average value of the credit card debt?

(iii) What is the accumulated value of the credit card limit?

(iv) What is the average value of the credit card limit?

(v) What is the accumulated value of the credit card monthly repayments?

(vi) What is the average value of the credit card monthly repayments?

(e) What deferral options are available for credit card customers that you have identified as impacted by the COVID-19 pandemic?

(i) If none, do you intend on doing so?

(23 June 2020)
(PDF31KB)

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(18 August 2020)
(PDF103KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(18 August 2020)
(PDF75KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(16 June 2020)
(PDF109KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(16 June 2020)
(PDF89KB)

In the months of March, April and May 2020—how many overdrafts or similar short term credit arrangements (other than those initiated through the Coronavirus SME Guarantee Scheme) has your organisation set up with each of the following overlapping populations:

(a) charities and not-for-profit entities;

(b) ACNC registered charities; and

(c) SMEs.

A copy of the bank’s payment term policy or policies.

(PDF52KB)

Attachment
(PDF107KB)

With reference to the bank’s payment term policy or policies that the bank applies to its suppliers of goods and services, and customers of its goods and services:

(a) whether they are consistent between the purchase and sale of goods and services?

(b) in reference to (a), if not, why not?

(c) in reference to (a), if not, will the bank bring them into consistency?

(PDF55KB)

A copy of the valuation policies that the bank applies to:

(a) infrastructure investments.

(b) large commercial investments or like commercial investments, including definitions that lead to their classification as a large commercial or like commercial investments

(PDF53KB)

Attachment
(PDF264KB)

Whether the valuations on infrastructure investments finances by the bank are:

(a) independently completed?

(b) whether they are completed and/or reviewed annually?

(c) in reference to (b), if they are reviewed by whom?

(d) in reference to (b), if not annually, how often, the trigger, and the average timeframe between review?

Whether the valuations on large commercial investments or like large commercial investments financed by the bank are:

(a) independently completed?

(b) whether they are completed and/or reviewed annually?

(c) in reference to (b), if they are reviewed by whom?

(d) in reference to (b), if not annually, how often, the trigger, and the average timeframe between review?

Dr MULINO: Thank you for coming in to give evidence today. Are you participating in the Australian Business Growth Fund?

Mr Carter: We've certainly inquired of the Business Growth Fund. The specific answer is that we're not at this moment …

Dr MULINO: You might need to take this on notice: were you asked to participate?

Mr Carter: I'd need to take that on notice

Hansard p. 49

29 November 2019

Dr MULINO: Thanks. Of the 2½ thousand staff, how many are involved in AML and CTF fraud and how many are involved in risk more broadly?

Mr Carter: All of those activities are, firstly, the responsibility of all of our staff at the front line, because that's where we spot a lot of activity. I have 45 resources dedicated to fraud, financial crime, AML and CTF who are supporting us, excluding the technology teams. That's part of a group infrastructure and security capability which deals with cybercrime and financial crime, and they also run the infrastructure. I could provide back to the committee the number of technology staff.

Hansard p. 49

29 November 2019

Dr MULINO: … It would be interesting to see some summaries of the benchmarking, particularly pre and post and the extent to which you can attribute any improvement in any particular areas to specific process changes.

Mr Carter: … I'd be happy to share back with the committee some of those examples.

Hansard p. 50

29 November 2019

Dr LEIGH: Dr Mulino raised the issue of the banning of unfair contract terms, which ensures that insurance companies can't deny claims based on unfair terms in insurance contracts. The Insurance Council of Australia, of which Suncorp is a member, has been actively lobbying against those reforms. Do you support the Insurance Council's position?

Mr Carter: I'm running the bank and the wealth business. I'm not intimately involved in the insurance business. I'd be happy on behalf of Suncorp, though, to take that question on notice and respond.

Hansard p. 51

29 November 2019

CHAIR: Can I ask a somewhat crude question—I get a merchant service from Suncorp: what is the default setting that it has?

Mr Carter: I'd need to come back to you with a bit more explanation of how it works and how people choose it, but my understanding is that merchants are just finding it complex to understand how they have a conversation with their customers and explain to the customer why they should choose a different route. I'd be happy to provide the committee with a bit more detail behind it.

CHAIR: I find it a bit odd because, if you're providing a merchant service, it offers low-cost routing; if it isn't offering low-cost routing as a default, it's offering something else as a default setting. What is that? Why, if you want uptake, don't you just offer it as the default?

Mr Carter: I need to come back to you. If we can solve it, we'd be very happy too.

Hansard p. 56

29 November 2019

Anti-money laundering:

(e) How frequently have you reported to AUSTRAC on a scheduled basis over the past decade?

(g) Over the past decade, how many AUSTRAC investigations into the bank have been:

(i) opened

(ii) completed with penalties

(iii) completed without penalties

(iv) abandoned

(h) How many fines have been paid to AUSTRAC over the past decade, and what were their values?

(i) Have any AUSTRAC notifications or investigations resulted in terminations of employment or other penalties for employees?

(j) Have any AUSTRAC notifications or investigations resulted in terminations of employment or other penalties for executives?

(k) What staff training is provided to assist anti-money laundering and other serious crime detection?

Dr LEIGH: Given that you, Mr Carter, have a different view from that published in the Financial Review, I wonder if you might undertake to the committee to report back to us as to what is your estimate of the savings to new customers over the life of the loan? And if it were possible to do that in the same format that the Financial Review has done in terms of the additional interest over the life of the loan with, for example, a half million dollar loan and a million dollar loan?

Mr Carter: Yes, I will do that.

Hansard p. 56

29 November 2019

Home loan approval timeframes
For all home loan applications you have received in the quarter ending 31 March 2021 (regardless of whether the application was settled):

(a) What is the average and median time from receipt of application by the bank to final approval, for applications received directly through your branch network?

(b) What is the average and median time from receipt of application by the bank to final approval, for applications received through a mortgage broker?

(c) If there is a difference in average and median time from receipt by the bank to approval for applications received through the branch network compared to the those received through a mortgage broker:

(i) What is the reason for the difference?
(ii) How might this impact the competitiveness of mortgage brokers?
(iii) What is the bank doing to equalise the difference in times?

(d) Is an application received through the branch network processed differently from an application received through a mortgage broker? If so:

(i) What is the reason for the difference?
(ii) Is this difference informed by bank policy? If so, why?

Response

(Publication date)

Hansard pp. 56-57

1 July 2021

(3 August 2021)
(PDF78KB)

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(16 June 2020)
(PDF92KB)

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(12 June 2020)
(PDF56KB)

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(12 June 2020)
(PDF411KB)

Merchant services and low cost routing:

(a) In terms of your Point of Sale (POS) strategic merchant services:

(i) What is the total number of your POS strategic merchant services customers?

(ii) What is the number small and medium business customers?

(b) What number and share (percentage of total) of your total strategic merchant services customers and the number and share of small and medium business merchant services customers:

(i) Use the Least Cost Routing (LCR) or Merchant Choice Routing (MRC) option for multi-network debit transactions?

(ii) Have a contract for the lowest cost routing option, when including all fees associated with the transaction including interchange and scheme fees?

(c) Is LCR or MCR on multi-network debit transactions offered to all customers as an opt-out option to ensure all get access to savings? If not:

(i) Why?

(ii) Considering that the Reserve Bank of Australia has advocated LCR since 2013, why have you not found a way provide this service and the associated cost savings to all of your merchant services customers?

(iii) Do you believe you are acting in your merchants’ best interests by not passing on possible savings?

(d) Are LCR or MCR services offered on all terminal types for multi-network debit transactions? If not:

(i) Which terminal types do not have LCR or MCR?

(ii) What percentage of your terminal fleet does this represent?

(iii) When do you plan to upgrade those terminal types that do not have LCR or MCR to enable those merchants with those terminal types to access LCR or MCR?

(e) Are LCR or MCR services offered on all pricing plans for multi-network debit transactions? If not:

(i) Which pricing plans do not have LCR or MCR as an option?

(iii) Why?

(f) If you provided all your strategic and small and medium business POS merchant services customers access to the lowest cost scheme on all multi-network debit transactions, what would the savings be for:

(i) Your strategic merchants customers?

(g) If you passed on at POS the lowest cost per transaction via dynamic routing to your merchants, based upon current and eftpos 1 July 2020 pricing, what would the savings be for:

(i) Your strategic merchants customers?

(h) Are any additional fees or charges, such as terminal rental, added or increased for small and medium business merchant customers who elect to implement LCR or MCR?

(i) If so, why?

(ii) Do you increase the average eftpos transaction fee for customers who choose to use LCR or MCR compared to other plans? Why?

(iii) Does a customer’s choice to use LCR or MCR for debit transactions impact the fees you charge for credit transactions for any of your merchant customers? Why?

Response

(Publication date)

Implementation of Coronavirus SME Guarantee Scheme:

(a) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received in total?

(b) How many credit arrangements has your organisation approved through the Coronavirus SME Guarantee Scheme?

(c) In relation to the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities and not-for-profit entities?

(d) How many credit arrangements for charities and not-for-profit entities has your organisation approved through the Coronavirus SME Guarantee Scheme?

(e) In relation to applications for credit under the Coronavirus SME Guarantee Scheme, how many requests for credit has your organisation received from charities registered with the ACNC?

(f) How many credit arrangements for charities registered with the ACNC has your organisation approved through the Coronavirus SME Guarantee Scheme?

(5 June 2020)
(PDF73KB)

Hansard p. 60

1 July 2021

Hansard pp. 61-62

1 July 2021