The Australian Bankers Association has responded to the independent review of the Code of Banking Practice.

Of the 99 recommendations, the banking industry supports 61 in full. There are 29 recommendations that it supports in principle or in part, and in respect of the remaining nine it either needs more time to consider, or disagrees with.

There are also a number of related Federal Government reviews underway which it needs to take into account before it can finalise its work on some of the recommendations.

The response says that “the industry accepts that parts of the Code may no longer be fit for purpose and need to evolve to reflect the changing needs of our customers and the wider community as well as the banks. The industry has heard our customers and stakeholders that banks need to change how they go about doing their business. This is an important and substantive review to deliver on our commitment to make banking better. The industry will be making fundamental changes to the Code to fulfil this objective..”

Banks will make it easier for customers to reduce a credit card limit or cancel a credit card. But the industry does not support an obligation prohibiting banks from offering a credit card limit increase to a customer.

The industry will expand the coverage of small businesses in the Code by including a business with total credit facilities up to $3 million.

The ABA anticipates a transition period of 12 months once a new Code is adopted and approved by ASIC.