Banking Industry Outlook

This report provides an overview of the Australian banking industry, including the role of government, recommendations for human resource administration, and employment in the banking industry. It also discusses the findings and recommendations of the Royal Commission on misconduct in the Australian banking sector. The report concludes with a discussion on the risks and challenges faced by the banking industry.

Banking Industry Outlook 0
Title: Banking Industry Outlook
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Banking Industry Outlook 1
Executive Summary
This report summarizes an Introduction on Australian banking participants and the Australian
Banking system. An explanation of the Role of Government in Banking has been given. The
Recommendations meant for Human Resource Administration and employment in the Banking
Industry has been given and this is followed by a conclusion.

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Contents
Introduction......................................................................................................................................3
Australian Banking system..............................................................................................................3
Recommendations............................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Banking Industry Outlook 3
Introduction
Banking is pivotal part of everyone’s daily lives especially when it comes to migrating to a
different country. Foreigners who arrive in Australia find it as prime significance to settle
with financial activity and save the earnings. Opening the bank account in Australia helps
the easily management of finances and operate with regular payments like tuition fees or
rent and everyday expenses. If an individual has arrived in Australia for the purpose of
employment, bank account will be paid through the employer. The Australian country
comprises of competitive and developed banking system which comprises of foreign banks,
local banks and locally integrated branches of overseas banks. New banks are popping up in
the Australia.
The Royal Commission suggestions and finding a way through a political elucidation, there
are few areas which will get changed very soon. There are few consistent themes enacted by
the Commission and across investment groups and financial institutions is no more fees will
be charged without any purpose. Irrespective of the premise, there have been paid fees for
ambiguous purposes; Royal Commission has asked the financial institutions to end it. The
Royal Commission is able to maintain the status quo with intermittent checking of financial
records.
Australian Banking system
The Banking System within Australia is transparent and reliable. There are operational
and structural differences that exist within the system of USA. (Wilson, 2018). Australian banks

Banking Industry Outlook 4
are not operating under the imposed restrictions that have limited US bank functions. The
Australia as a country has been undergoing deregulation and privatization. Foreign banks have
been allowed to invest into the fiscal market. Retail financial institutions have been providing an
wide range of monetary and fiscal services such as consumer and industrial loans, general and
life insurance, securities underwriting, stock brokering services to the retail customers. This has
placed them in competition with merchant banks and brokerage houses (Davis, 2016).
Role of Government in Banking
The Australian Government has given permission for other than Australian banks for
operating as financial institutions and can serve the wholesale market. Moreover, Financial
institutions authorities have allowed merchandising banking activities through the domestically
unified subsidiary (Bologna, 2010).
What Did Royal Commission say About Misconduct in the Australian Banking sector?
The Australian Royal Commission typical features include document requests, public
consultation, and public hearings, which have been culminated into the Commission and handing
the findings and creating recommendations. The public hearings are preceded through reference
to Case studies. In particular, specific instances of relevant conduct have been examined. The
public hearings have taken over the conventional features of large scale. Royal Commission has
coercive powers, which have not been limited through conventional protections related to
privilege on the legal profession (Mala, 2017).
How did the Federal Government respond to the Recommendations of the Royal
Commission?

Banking Industry Outlook 5
The unethical practices of incriminating fees for no service will come to end. Mortgage
brokers can lose incentives. People who are making unreliable car loans and selling funeral
insurance will get an exit. Moreover, the compensation schemes will be provided to
unscrupulous banks victims. These are some of the changes which can be expected by
consumers. Fees that have been deducted through personal accounts, including the super funds
have been massive and no one will be able to forget the disclosures about dead people being
slugged particularly for life insurance (Kofman & Murawski, 2015).
How did Federal Opposition Respond to Recommendations of Royal Commission?
The Opposition will implement the Royal Commission recommendations. The central
Opposition has plans to pursue broader changes in regulation with relation to financial services.
The Opposition believes there is a lot of complexity in-laws and framework needs to be made
simple. According to the Federal Opposition, the rules for mortgage brokers will be required to
change. The big financial institutions and banks are a large priority. The government is ready to
give qualified support to the recommendations (Gruen, 2015).
How did the Banking Industry Respond to Recommendations of the Royal Commission?
The reforms which are related to banking services and consumer lending offered through
Australia banking institutions provide financial institutions to customers living in remote areas or
people who are not adept to using English, identify the methods for these customers and
undertake the banking services. In case, if any patrons are undergoing through a difficulty in
proving the identification and identified as Aboriginal, the bank needs to follow the AUSTRAC
guidance. Without the express agreement given through customer, financial institutions will not
be allowed any informal overdrafts imposed on the basic accounts (Alhaj Ismail, Adwan &
Stittle, 2018).

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Recommendations
Recommendations for Employment in the Banking Industry
The final report given by Royal Commission comprises of key recommendations with
relation to employment. There is a massive opportunity for individual workers. However, the
person must have only one superannuation account and must be carried with changing jobs. The
Royal Commission discusses with relation to large fund spending with what Commission has
described as insignificant amounts and establishes the good association with employers like
sporting and entertainment events, and the employees need to join the fund (Pais & Stork, 2011).
The commission has recommended strengthening of the SIS Act, which prohibits associates and
trustees for offering goods and services to individuals on the condition of being agreed to a
member of the fund.
Recommendations meant for Human Resource Administration in the Banking Industry
For any financial organization, the manager needs to do effective human resource
management. Banking has always been considered as the people business and turning to be a
successful one. For banking purpose, the significance of human resource management needs to
grow diverse which is mainly because of nature of the financial institutions industry and this has
been service based. The management of the workforce in the financial institutions and also
handling the economic and financial risk is a big challenge.
Conclusion
The risks prevalent in the banking industry like unsteady income, occupation type and
collateral possessions determine the risk of credit which is interlinked to debtor. Credit risk has
been linked with banking dealings as well as foreign dealings that are taking place outside bank.

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Banking risk such as economic forces affect the country or specific individuals or
particular markets, there is a significant amount of risk which is classified as the credit risk. This
is considered as deliberate scam. The candidates selected in financial institutions need to go
through training before they start working.

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References
Alhaj Ismail, A., Adwan, S., & Stittle, J. (2018). Does Accounting Treatment of Share-based
Payments Impact Performance Measures for Banks?. Australian Accounting Review. doi:
10.1111/auar.12247
Bologna, P. (2010). Australian Banking System Resilience: What Should Be Expected Looking
Forward? An International Perspective. IMF Working Papers, 10(228), 1.
Davis, K. (2016). Macroprudential Regulation and Banking Regulation. Australian Economic
Review, 49(1), 93-95.
Gruen, N. (2015). Central Banking for All: A Modest Case for Radical Reform. Australian
Economic Review, 48(2), 205-208.
Kofman, P., & Murawski, C. (2015). Does Australia Need a New Banking Model?. Australian
Economic Review, 48(2), 200-202.
Mala, C. (2017). The Prospect of Dual Unit Banking System in Indonesian Regional
Banking. Account And Financial Management Journal.
Pais, A., & Stork, P. (2011). Contagion risk in the Australian banking and property
sectors. Journal Of Banking & Finance, 35(3), 681-697.
Wilson, P. (2018). Royal Reflections:Lessons HR must learn from the banking industry's
conduct. CQ University Courses Resources Online (HRMT20025), July Issue 45,, 5.