<!--HTMLCleanerRegion--> List of recommendations

List of recommendations

Recommendation 3.1

3.72       In light of the evidence that international observers are misinterpreting the level of capital held by Australian banks due to the Australian Prudential Regulation Authority's (APRA) requirements, the committee recommends that APRA:

Recommendation 3.2

3.73       That APRA review its approach to how internet-based accounts should be treated under the Basel III liquidity requirements.

Recommendation 3.3

3.74       That APRA addresses, without further delay, the unique issues Basel III may pose for mutual ADIs as a result of their corporate structure and that it publishes a document which sets out how these problems have been addressed.

Recommendation 5.1

5.10       Inconsistencies between the taxation arrangements applying to interest earned by individuals on deposits held in authorised deposit‑taking institutions compared to other methods of saving should be addressed.

Recommendation 5.2

5.27       That interest withholding tax applying to financial institutions be abolished as fiscal circumstances permit.

Recommendation 5.3

5.39       To enhance investor demand for Australian securitisation, the committee recommends that the government encourage central banks in other jurisdictions to accept Australian asset-backed securities denominated in foreign currencies for repurchase agreements in the foreign jurisdiction.

Recommendation 6.1

6.35       That the Reserve Bank of Australia conducts, on a quarterly basis, a dedicated senior loan officer survey and publishes the results of these surveys.

Recommendation 8.1

8.57       That the Australian Taxation Office (ATO) investigates allegations that GST revenue was not handled appropriately by banks and receivers and that, if necessary, the ATO makes recommendations to the Australian government about legislative changes in this area.

Recommendation 9.1

9.8         That a voluntary code of conduct for small business lending, developed by the Australian Bankers' Association, be established. The code should, at a minimum, require that:

Recommendation 9.2

9.9         That the Australian government takes any necessary action to facilitate the establishment of the code of conduct for small business lending referred to in recommendation 9.1.

Recommendation 9.3

9.11       That the terms of reference for the Financial Ombudsman Service (FOS) be amended so that:

Recommendation 9.4

9.12       That the terms of reference for the Financial Ombudsman Service (FOS) be amended so that FOS may consider disputes from small business applicants that relate to matters from 1 July 2008 onwards under the new caps outlined in recommendation 9.3. The staffing levels and funding of FOS should be reviewed to ensure it has sufficient resources available to perform this function.

Recommendation 9.5

9.15      That the code of conduct for small business lending referred to in recommendation 9.1 stipulates that lenders may not appoint receivers to a small business unless:

Recommendation 9.6

9.16       That receivers be required to cooperate with all requests from the Financial Ombudsman Service (FOS) that relate to a dispute between the bank and the borrower that FOS is considering.

Recommendation 9.7

9.19       That when a business is placed in receivership, the receiver is required to demonstrate to the borrower that they have considered every unconditional offer when exercising a power of sale in respect of a property.

9.20       If the borrower can demonstrate that an unconditional offer has been made by a party interested in purchasing a property and the receiver instead sells the property by a process that achieves a price that is less than that offer, the burden of proof should be on the receiver to demonstrate that their actions were in accordance with section 420A of the Corporations Act 2001.

Recommendation 9.8

9.21       That receivers be required to cooperate with any reasonable requests for information made by the borrower that would assist the borrower secure refinance.

Recommendation 9.9

9.22       That the code of conduct for small business lending referred to in recommendation 9.1 requires that if a bank has appointed a receiver to the small business, then the bank must regularly inform the borrower about the costs and fees associated with the receivership. The bank must also take all reasonable care to ensure the costs and fees are reasonable.

Recommendation 9.10

9.24       An early priority of the Australian Small Business Commissioner should be to examine burdens for small businesses in pursuing litigation against banks and receivers and to report their findings and recommendations to the Australian government.

Recommendation 9.11

9.25       That, following the Australian Small Business Commissioner's appointment becoming effective, the Small Business Commissioner provide an annual report to the Senate on small business finance issues. In preparing this report, the Small Business Commissioner should receive any necessary support from relevant government departments and agencies.

Recommendation 10.1

10.29    That an independent and well-resourced root and branch inquiry into the Australian financial system be established.

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