Talk Around Town

WOW… JUST WOW, The Banking Royal Commission has unearthed a raft of allegations against the major Banking institutions in the land. Alleged bribery, forged documents, repeated failure to verify customer’s living expenses before lending money and misselling insurances to people who can’t afford it.

All the four Banks; CBA, ANZ, NAB and Westpac have been caught up in the Royal Commission, not one has been spared and the evidence to date has been appalling.

In addition, last August Austrac (Australian Transaction Reports and Analysis Centre) announced it was suing the CBA Bank for 53,700 breaches of money laundering and counter-terrorism financing laws after the Bank failed to report $77m worth of suspicious transactions.

In November, the federal court-imposed penalties of $10m each on ANZ and NAB for attempting to manipulate the bank bill swap rates.

So how has this impacted the financial services industry and what does it mean for you, right now?

Every week a new revelation comes out of the Royal Commission, and the next week the Banks change their processes and terms of reference to try to stay ahead of any report or recommendation that will be handed down. The first interim report from the Royal Commission is due in November.

It means that transactions that may have been approved last week will no longer get the ‘green light’. It may mean that the level of information that we require from you to gain approval has increased 5-fold from last week to this week.

It means that pricing for each transaction changes as Banks realise that there is a greater cost on them to meet the new level of compliance required.

In some cases, each and every deal is subject to an audit after the transaction has settled…this has made the credit staff extremely nervous in a) making a decision and b) being able to justify why they made the decision…hence, every detail has to be correct and the applications we submit need to be complete and comprehensive.

I ask you to be patient with us as we work through the changing landscape of what is required and if we seem to be asking for more and more information to satisfy a loan approval, be rest assured it is required.

Our team is getting weekly updates from all banks & finance companies that we deal with (some 25 at last count) and we are perfectly placed to guide you through the ever-changing labyrinth of requirements to get you, our clients the best deal available – first time.

With over 22 years’ experience in funding trucks, equipment and machines, be rest assured we understand what is required and still maintain a + 90% success rate on all applications.

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