Ethics

Will the new Banking Code of Practice make any difference to SMEs?

Will the new Banking Code of Practice make any difference to SMEs?

The ABA has just released its new and improved Code of Banking Practice, the fourth version since 1993. But bank behaviour has not improved over this time which lends weight to the view these codes are not worth the paper they are written on. So it would be understandable, but unfortunate, if SMEs thought this […]

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Prospa, ASIC & the conundrum of Unfair Contract Terms law

Prospa, ASIC & the conundrum of Unfair Contract Terms law

The aborted Prospa IPO raises questions not just about the online SME lender’s compliance with UCT but also ASIC’s role in applying and enforcing this law which came into effect in November 2016. In its prospectus Prospa said “we have reviewed our loan contract in relation to UCT in July 2015 and again in September […]

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Prospa IPO exposes lack of transparency in the unregulated non-bank SME lending market.

Prospa IPO exposes lack of transparency in the unregulated non-bank SME lending market.

Prospa’s impressive growth trajectory is set to receive a boost when it becomes Australia’s first online small business lender to list on the ASX. But the prospectus exposes issues of transparency for the acknowledged market leader in what is a largely unregulated market. Propsa will raise $146m of new capital of which $100m will fund […]

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Will the bank chairmen step up, step down or be sacked?

Will the bank chairmen step up, step down or be sacked?

Scott Morrison says bank boards need to step up, but maybe it would be better if they actually stepped down, starting with the chairmen? CBA’s tattered reputation took another blow today when APRA released this report on governance, culture and accountability at the bank. It will certainly increase the heat on CBA but the Treasurer […]

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How the fall out from the Royal Commission will affect you

How the fall out from the Royal Commission will affect you

I got it wrong when I predicted the Royal Commission wouldn’t amount to much. As a hardened 25 year career banker even I’ve been dismayed by the revelations. There will be more to come later next month when the RC turns its attention to SMEs, but the ramifications from the RC will be far reaching […]

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Australian SMEs need & deserve a borrowers’ Bill of Rights

Australian SMEs need & deserve a borrowers’ Bill of Rights

Predatory lenders exist in the SME space just like the payday personal lenders. The risk is the less scrupulous operators will spoil an exciting new source of SME funding.  American small business borrowers now have a Bill of Rights which will afford significant protection from predatory lenders. US lenders which join the Responsible Business lending […]

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The Banking and Finance Oath can help improve ethical standards

The Banking and Finance Oath can help improve ethical standards

Everyone who works in Banking & Finance should take The Oath. Established in April 2012 the Banking & Finance Oath contains a set of commitments that individuals working in the finance sector are encouraged to adopt and apply as personal principles in their work. To date just over 500 people have signed the oath which […]

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