Questions On Commonwealth Bank Of Australia

The Act dictated that relevant supervisory agencies ensure depository banks fulfill the credit and lending needs in the areas in which they were chartered. The Act goes on to state that all business must continue to be conducted within sound operating practices. Compliance (or lack thereof) would be taken into account when approving applications for expansion through new charters, mergers and acquisitions. The law makes no attempt to evaluate the performance of any given institution, nor does it establish minimum criteria for granting an individual or business a loan. The CRA does not mandate that an institution take on any particular types of loans, or approve certain applicants.

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

Andrew Bailey (2013) “The future of UK banking - challenges ahead for promoting a stable sector”. Bank of England [online]. Available from:

Once completing the quiz “What’s the Right Organisational Culture for Me?”(Robbins, DeCenzo, Coulter & Woods, p. 46), I found that my personal score of 24 placed me in this more humanistic style of organisational culture. According to Robbins et al (2016, p. 46), scores more than 22 “indicate a preference for informal, humanistic, flexible and innovative cultures”. The quiz itself looked into the seven main pinpoint of organisational culture; “innovation and risk-taking, attention to detail, outcome orientation, people orientation, aggressiveness and stability.” I think that organisational culture is integral to the businesses productivity because of its ability to reflect communal shared values, principles, traditions, and practices that influence the way an organisation’s employees and other members conduct themselves.

Very often than not there are regulations implemented as a means to dissolve an issue that needs to be resolved as soon as possible and is implemented immediately. However these needed resolutions end up affecting the little man such as community banks.

An article appearing in the Finance and Economics section of The Economist print edition with the headline ‘‘Turn of the wheel’’ discusses the Treasury proposing measures of cutting red tape. The article notes after President Trump assumed office, he vowed to restructure the elephantine law which had recast financial regulation following the 2007-08 crisis. Thus, he asked Steven Mnuchin, the Treasury secretary to measure all the rules of America against 7 broad principles, bail-outs prevention by taxpayers as well as instituting more efficient regulations inclusive. Mnuchin provided a report on banks where he proposed installments to cover capital markets, asset, and insurance management together with financial

As part of the Financial Services and Markets Act 2000, the FSAs sole purpose are to meet their four objectives: maintain market confidence, enhance financial stability, protect the consumer and reduce financial crime. By not implementing rules, doing enough investigations and enforcing power, the FSA has failed to meet all these objectives. Trust was lost in the UK Financial system when the LIBOR scandal went public, banks revealed themselves to not be as financially stable as what they portrayed to be, a number of consumers got scalped by the manipulation and the LIBOR scandal occurred as one of the biggest financial crime that has yet to send individuals to jail. As a regulator that failed to meet all of its objectives, the FSA had a responsibility in the LIBOR scandal. Being the UK’s central bank, the BoE’s mandates were to provide monetary stability and financial stability. Even if this body does not oversee banks’ compliance with regulations, the scandal led to monetary and financial instability, which should concern the BoE. In fact, Diamond testifies against Paul Tucker, the deputy governor in charge of financial stability for the BoE. Diamond claims Tucker implied the LIBOR rate is high and should be lowered.

Knowing that the RBA has a far-reaching hand into the financial sector by being able to manipulate the economy is truly insightful. A key point is the cash rate in Australia is followed closely by mid to long term interest rates, which tie into mid to long term loans such as personal loans and mortgage loans. Credit cards are not so closely related in today’s world because they are unsecured debt.

• Compliance: Evaluating adequacy of compliance risk management and assessing banks’ effectiveness in identifying and responding to risks posed by new products, services, or terms. Examiners will also assess compliance with the following: – new requirements for integrated mortgage disclosure under the Truth in Lending Act of 1968 and the Real Estate Settlement Procedures Act of 1974. – relevant consumer laws, regulations, and guidance for banks under $10 billion in assets. – Flood Disaster Protection Act of 1973 and the Service members Civil Relief Act of 2003.

The report shows that without taking ethics seriously and having a strong internal control system, a company might conduct too aggressive an approach of doing business that undermines both internal and external business environments. Because of both external corruption environment and internal pressure to grow business and stay competitive, financial institutions make

•Insufficient policy review and approval processes could lead to publishing availability policy and applying business practices inconsistent with Regulation CC

This Act provided an immediate instrument for UK banks to be transported into public ownership and then - if there is one - to make a further transfer to a buyer in situations where it is necessary to maintain stability in the UK financial system . This was also a good response because by using this act it allowed The Treasury to nationalize Northern Rock and parts of Bradford & Bingley . Nationalization safeguarded the bank’s future, which was crucial for the country’s financial well-being, this is great because it could be monitored closely by the government on behalf of the taxpayer - preventing the banks from making the same detrimental mistakes . However, this act was replaced by the Banking Act 2009 that made provision for the nationalization of banks, it amended the law on bank insolvency and administration. This shows the that the Banking Act 2008 is an inadequate response because it was in need of reformation due to nationalization not being successful in the hands of the public, rather only a short term solution. Furthermore, it can be argued that politicians are not the right people to run the banks. They do not have the commercial abilities essential to run such important and challenging financial institutions. If experienced veterans of the banking industry were unsuccessful in evading the pitfalls recently, inexperienced government personnel are very unlikely to succeed. It can be said that the financial, and in

A review on the UK banking system was done by Lord Turner, the chairman of the financial services authority and he made recomendations which were adopted in the UK banking act 2009 that the regulators should consistently collect information from the institutions playing in the financial service industy that are not fully regulated ie the shadow banking systems(Schaeck 2010) this also ensures that the regulator has information of all operations in the financial sector and can see danger sighs in advance in case of a negatve eventuality, as risk in the banking industry are systematic in nature.

The PwC were charged £1.4mllions by the AADB after failing to report that the investment bank JP Morgan’s systems is not as per the statutory requirement and are not sufficient to safeguard the clients’ assets (Treanor, 2017). JP Morgan had been mixing their clients funds with their own’s for a period of seven years. It was PwC’s task to submit a report to Financial Services Authority (FSA). The report suggested that JP Morgan have followed and complied with relevant framework and had in place internal control system to safeguard clients’ funds. An investigation led by FSA revealed that JP Morgan is guilty of violating the rules of not segregating their funds with their clients’. This is lead to doubt in professional integrity of PwC’s work. This error, if quantified, meant “an average of £5 billion of client money was at risk each day” (Treanor, 2017). “JP Morgan was fined £33millions in June 2010 for failing to segregate client money from its own funds over a seven-year period” (Treanor, 2017). Furthermore, PwC admitted that it has failed to

ABC Learning Centers, an Australian company was then run by CEO Eddy Groves and at one point was the world's largest provider of early childhood education services before the company bizarrely collapsed. The share price had dropped from a massive $8.50 to just $1.15 within a span of a year (Cohen C 2009)