Challenges in Australian Banking

AUSTRALIAN BANKING
Report
MAY 4, 2019
Australia

EXECUTIVE SUMMARY
Banking system is the key part of any country’s economy. Australian banks also play an
important role in Australian banking system. Australian banking system depends on its four big
banks ANZ, CBA, NAB, and Westpac banking corporation. The Australian banking system
currently facing strong problems related to organizational culture and ethical issues. The
Australian government is taking various steps to reform the banking sector in the country. This
report analyses the current banking situation in Australia and what are the major challenges that
a new manager has to face in Australian banks. However, from last two years, large numbers of
Australian banks were under investigation. The Royal banking commission (or Hayne
commission) suggested some blunder changes in organizational culture and human resource
development in Australian banks. However, this report analyses the major Australian HR issues
and challenges that is normally face by a foreign manager. Diversity of culture and change
working conditions are some of the major issues. However, the role of leaders in banking
organization is still a problem and it was found that many top executives and leaders in banks
were also involve in corruption, fraud, bribery, and some other unethical problems. The present
work is an attempt to cover all these aspects and HR issues in Australian banking system with
some short overview and history paragraphs.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
1. Introduction..............................................................................................................................3
2. Body Paragraph...........................................................................................................................3
2.1 History & Overview of banking system of Australia................................................................3
2.2 The features of banking in Australia.........................................................................................5
2.3 Current issues and challenges in banking sector in Australia....................................................6
2.4 HRM issues for banking sector..................................................................................................7
2.5 HR Practices in Australian Banking system..............................................................................9
2.5.1 Recruitment process (How do they recruit people)............................................................9
2.5.2 Reward system....................................................................................................................9
2.5.3 Performance management...................................................................................................9
3. Recommendations..................................................................................................................10
4. Conclusion..............................................................................................................................10
References......................................................................................................................................11

1. Introduction
Baking sector in Australia is termed as one of the transparent and reliable sector. Australia
developed a competitive banking system in the country that consist of local banks, foreign banks,
and locally incorporates subsidiaries bank of overseas banks. This report helps to understand that
what are the major challenges and issues in Australian banks for a new foreign manager. This
report shows how a new manager will have to adjust with changing banking culture and
challenging issues. The report includes various features of Australian banks. This report is
beneficial to understand the human resource management issues and challenges in banking
sector. It also helps to understand that how a new manager in Australia will face such issues. The
purpose of this report is to find out HR issues and different challenges that a new manager will
have to face in Australian.
2. Body Paragraph
2.1 History & Overview of banking system of Australia
The first bank of Australia was New South Wales Bank, which was open in 1817 in Sydney.
Although the ANZ bank of Australia was also opened in 1835 in London under the name of
Bank of Australasia (Brown, 2018). However, todays many banks are entering in Australian
banking sector and some of the banks merges with top four Australian Banks. These four famous
banks are as follow:
1. Commonwealth Bank of Australia has more than 17 million customers and it is ranked
one bank in Australia by Bloomberg rating.
2. Australian and New Zealand Banking Groups (ANZ) has more than 8 million customers
and it secured rank 7 by Bloomberg rating.
3. Westpac Banking Cooperation has more than 13 million customers and it has secured
rank four banks in Australia by Bloomberg rating.