RBA says Australia is financially stable
In its latest Review, the Reserve Bank of Australia says:
The Australian financial system remains in good shape. The banking sector, in particular, is continuing to perform strongly, supported by the ongoing expansion of the Australian economy. Banks remain well capitalised, are experiencing historically low levels of bad debts and, despite a pick-up in competition, are continuing to record high rates of return on equity.
It says there are 3 areas of risk:
- the international environment;
- the household sector;
- intensified competition in the banking sector.
Transaction fee disclosure
ASIC has released a report on disclosure of transaction fees by banks, building societies and credit unions.
The report, Good transaction fee disclosure – An ASIC report, follows the release of ASIC’s Guide to Good Transaction Fee Disclosure for Bank, Building Society and Credit Union Deposit and Payments Products (Transaction Accounts) issued in June 2002.
The ASIC guide sets out principles of good disclosure for the five key areas where ASIC believes transaction fee disclosure is particularly important. These are:
- when a consumer is selecting a product or product provider;
- when changes are made to the level of fees or to the details around when, why or how they are charged;
- when a statement is received;
- when a consumer is actively seeking information; and
- immediately prior to making a transaction.
The ASIC report reveals that improvements have been made to the information on fees in statements to consumers.
It also notes that the circumstances when dishonour fees are payable need better disclosure.
