ASIC and APRA admit there is cultural change in banking. It is uncanny that the top 300 senior executives from the Commonwealth Bank of Australia were meeting on Friday to talk about the bank's culture, vision and values at the same time as members of a federal parliamentary committee were attacking the bank's culture.
In a five-star Sydney hotel, CBA's chief executive Ian Narev addressed the bank's senior leadership forum as part of efforts to "motivate and inspire our senior leaders to work together to lead and shape our culture for the future". In Canberra in the parliamentary committee room, Liberal MP Julia Banks focused on Narev's lack of knowledge of the CommInsure life insurance scandal as part of aggressive questioning of the chairman of the Australian Securities and Investments Commission, Greg Medcraft. She said the CommInsure debacle, which was exposed by Fairfax Media and ABC's Four Corners, was a systemic problem inside CBA and Narev knew nothing about it.
Nocookies. Facebook App: Open links in External Browser There is a specific issue with the Facebook in-app browser intermittently making requests to websites without cookies that had previously been set. This appears to be a defect in the browser which should be addressed soon. The simplest approach to avoid this problem is to continue to use the Facebook app but not use the in-app browser. After 12 hours of bank boss grilling, nothing politically has changed. From a political perspective, the most significant element of the 12 hours of grilling of bank bosses over the past three days came right at the death when Westpac's Brian Hartzer, the fourth and final CEO to appear, was wrapping up his testimony.
Hartzer, under sufferance, pretty much admitted that had the banks not agreed to submit themselves to appearing before the House Economics Committee at least once a year, it would have been difficult for the government to keep at bay Labor's populist and popular demands for a royal commission. "I don't remember the who said what exactly," said Hartzer of a meeting earlier this year with Treasurer Scott Morrison. Review of the four major banks: ANZ's Shayne Ellliott. Live article connection interrupted.
Please refresh your browser Bank inquiry day two in 15 dot points... Primrose Riordan Two down, one to go! Increased regulation of banks to follow banking review. After two days of hearings at the parliamentary banking review, it is already apparent that the banking industry is in for a period of increased regulation.
Regulatory expansion has been a feature of the industry since the global financial crisis. Unfortunately that has not worked in favour of increased competition. In the global quest for a safer financial system the big have tended to get bigger and the smaller and mid-tier financial institutions have suffered. A royal commission into banks would be overkill. By David Gallagher What will we learn this week that we didn't already know from the Big Four bank CEOs being questioned by Parliament's Economics Committee?
In my view, very little. There were no surprises in any of the questions put to Commonwealth Bank's Ian Narev and ANZ's Shayne Elliott over the last two days, who handled them deftly. The government is using the exercise as a classic case of retail political management, being seen to be keeping our major banks accountable while the Opposition calls for a royal commission into the banking industry.
Liberal MPs show up their Labor counterparts at bank inquiry. Picking the winners and losers from the first day's hearing of the parliamentary inquiry into the big four banks has turned out to be easier than Chanticleer originally anticipated.
Given the amount of time devoted to talking about banks over the past year one would have expected the politicians from both sides of parliament to have come out on top when grilling Ian Narev and David Cohen from the Commonwealth Bank of Australia. But it is fair to say that the Labor MPs missed a golden opportunity to make the inquiry a platform for them to put the case for a royal commission into the big four banks. They failed miserably on that front. Two of the Liberal MPs, chairman David Coleman and committee member Julia Banks, emerged from the first day's hearing with their credibility enhanced.
Coleman showed a strong commitment to boosting competition. Banks not alone in complex pay packets, but CEO pay is a soft target for review. The declaration by ANZ chief Shayne Elliott that the bank's executive remuneration structure was under review was a welcome admission by at least one of the major banks that the present scorecard was overly complicated.
Elliott told the parliamentary inquiry into the major banks that ANZ was reviewing what metrics were used to measure customer satisfaction and how senior executives were rewarded. He also admitted there were too many metrics involved in the process. This is an issue many investors and proxy advisers have been complaining about for years. It is not just an issue confined to the banking sector though and should be viewed outside the context of the banking inquiry. Review of the four major banks: ANZ's Shayne Ellliott. How Julia Banks made Shayne Elliott squirm over ANZ's 'blokey culture' Did you hear the one about the young corporate lawyer who applied for an ANZ home loan only to be told only her husband's income – not her's – could be counted because she was a married woman of child-bearing age?
Twenty years later after a career at the top of the corporate world, she became a federal politician, interrogated that bank's current chief executive and ripped him a new one over his institution's "endemic blokey culture". In the words of the working woman's philosopher Dolly Parton in her seminal "9 to 5", "they never give you credit, it's enough to drive you crazy if you let it".