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Financial Markets and Institutes in Australia Assignment

   

Added on  2021-06-16

7 Pages1379 Words19 Views
Finance
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Financial Markets and Institutes inAustralia
Financial Markets and Institutes in Australia Assignment_1

Table of ContentsQuestion 2..................................................................................................................................3Answer 2....................................................................................................................................3References..................................................................................................................................6
Financial Markets and Institutes in Australia Assignment_2

Question 2Are the incidents reported by MRCB in the initial inquiries in breach of a) Australianfinancial regulations, b) ethics, and/or c) corporate social responsibility? Explain why.Answer 2The Monash Retail Commercial Bank (MRCB) indulged in banking misconduct. Thecustomers of the bank were unable to service their credit card debt. The bank was indulged inoffering automatic increases in the limits of the credit card. The bank increased the limitswithout any type of inquiry related to the current employment status and the income of thecustomers. The bank offered this service just by analysing the history of the repayment of thecustomers. As per the Australian financial regulations, it is the responsibility of the lenders to makereasonable inquiries related to the finances of the consumers, verification related to thefinancial situation of the consumers, inquire about the objectives and the requirements of theconsumers and make sure the credit contract offered to the consumer is suitable. The bankhad not performed the essential inquiries related to the financial status, situation andrequirements of the consumers. It has been found in the case that the bank increased thelimits of credits without such important inquiries and not complying with the Australianfinancial regulations is breaching the code of conduct, ethics and regulations. The increase inthe limits of the credit card resulted in the increased credit card debt of the consumers. Theconsumers became unable to repay the credit amount to the bank. This can be said that it isthe fault of bank as no such inquiries were initiated by the bank related to requirements of theconsumers and financial conditions but they automatically increased the credit limits. This isnot sufficient for the bank to analyze the history of the repayment of the credit by theconsumers. The breaching of the mandatory regulations resulted in such type of situation to
Financial Markets and Institutes in Australia Assignment_3

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