The ACCC has varied the reporting conditions that apply to the authorisation granted to the Australian Banking Association (ABA) in 2019 in relation to its Banking Code. The authorisation related to provisions of the Banking Code that were introduced in response to recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, in particular in relation to changing banking products and practices to improve outcomes for low-income account holders. ACCC authorisation was required because implementing these provisions would involve banks acting jointly with their competitors. It was granted subject to conditions which required the ABA to, among other things, report data relating to low-income customers’ use of low- or no-fee bank accounts (basic accounts).
On 3 December 2020, the ACCC agreed to the ABA’s request to vary the reporting conditions. In doing so the ACCC took into account new information about the accounts offered by various banks (including that some banks offer only low- or no-fee accounts), and about the availability of data showing how frequently low- or no- fee accounts held by low-income customers have become overdrawn. The ACCC determined that the conditions as varied would provide it with the information required to assess whether the new provisions of the Banking Code had resulted in benefits to the public as intended.
Further information about the ABA’s request and the ACCC’s decision is available on the ACCC’s public register at: Australian Banking Association.