Westpac Banking Corporation

This report provides an overview of Westpac Banking Corporation, one of the largest and oldest banks in Australia. It covers the functioning of the bank, applicable laws and regulations, and the impact of international treaties and conventions. The report also highlights the bank's commitment to human rights and sustainability.

Running Head: Westpac Banking Corporation
WESTPAC BANKING CORPORATION
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Westpac Banking Corporation
Executive Summary
When it comes to banking and financing sector in Australia, the first name pops up in
mind is Westpac Banking Corporation. It the one of the biggest and the oldest bank
operating since 1817 in Australia. It have its headquarters in Sydney. This report will
focus mainly on the functioning of the bank, the applicable laws, which the company
have to follow, and the effect when they are not followed. This report will also focus
on the international treaties and convention which impact the working of the
Westpac.
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Table of Contents
Executive Summary............................................................................................................................1
About Westpac....................................................................................................................................3
Applicable Rules and Legislations....................................................................................................3
International Treaties and Conventions...........................................................................................7
Bibliography.......................................................................................................................................13
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About Westpac
In 1817, Westpac was established and began trading in Australia. Initially it was
known as Bank of New South Wales. It has branches and offices all over Pacific
region (Do et al., 2007). Westpac Banking Corporation is an Australian based
company operating its work in banking as well as fiscal services, which include
merchandising, commerce, financial organisation, and services related to
management of money. With having branches in Australia, New Zealand and in
other Pacific region, Westpac is one of the biggest banking corporations in Pacific
region. It has workplace at some of the prominent places around the globe (Westpac
Banking Corporation Annual Report 2010, 2010). Westpac has its headquarters in
Sydney, Australia (Anon., 2019). It operates mainly in five divisions: Consumer Bank,
Business Bank, Westpac Institutional Bank, Westpac New Zealand, BT Financial
Group. There are 35,029 employees in Australia and more than 40,000 all over the
globe in 2018 (Chronican, 2007).
Applicable Rules and Legislations
Westpac primarily deals in banking and financing sector and its headquarter is in
Australia. Hence, Australian laws will be applicable. Some of the regulatory
framework and agencies which supervise and regulate, which are applicable on
Westpac are-
1. Australian Prudential Regulation Authority- Australian Prudential Regulation
Authority is in charge of careful supervision of banks, credit associations,
building social orders, life and general insurance agencies, amicable social
orders and most superannuation/pension reserves. APRA’s role incorporate
setting up and upholding prudential models and practices intended to
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guarantee that, under every single sensible situation, monetary guarantees
made to clients by the establishments it directs are met. APRA supervise the
working and regulate the banks and Westpac is one of the major and biggest
banks of Australia and it have to report prudential data to APRA incorporating
data with connection to capital ampleness, extensive vulnerability, bond rating
and ability to pay debt. Its monitored substances in Australia are approved
safety net providers and the caretakers of superannuation reserves are
likewise subject to the APRA administrative routine. Delineating is enhanced
by discussions, on location investigations and focus on audits. Westpac’s
outer examiners likewise have a commitment to provide details regarding
consistence with certain statutory and administrative financial necessities and
on any issues that as they would see it might can possibly tangibly partiality
the interests of contributors and different partners. (Anon., 2018).
2. Reserve Bank of Australia- Reserve Bank of Australia is in charge of money
related arrangement, keeping up fiscal structure quality and propelling the
security and effectiveness of the portion systems. The Reserve Bank of
Australia is a working part in the cash related markets, manages Australia’s
distant stores, issues Australian currency and fills in as financial specialist to
the government of Australia. Westpac have to follow the strict guidelines set
by Reserve Bank of Australia. Westpac and other banking corporations have
to make rules and regulations regarding loans and interest rates according to
the guidelines set by Reserve Bank of Australia (Evans, 2019).
3. Australian Securities and Investment Commission- Australian Securities and
Investment Commission (ASIC) is the apex controller of the Australian
organizations. The essential obligation of ASIC is to direct and implement
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organization, buyer credit, money related markets and monetary
administrations laws that ensure purchasers, investors and creditors.
Concerning money related administrations, it advances genuineness and
reasonableness by giving shopper assurance, utilizing administrative forces to
authorize laws identifying with store taking exercises, general protection, life
coverage, superannuation, retirement bank accounts, securities, (for example,
offers, debentures and oversaw speculations) and fates contracts and
monetary guidance. ASIC has obligation regarding directing exchanging on
Australia’s household authorized markets and of exchanging members.
Westpac have setup laws, rules and regulations according to the instructions
given by ASIC. There are strict punishment when ASIC’s guidelines are not
followed. Recently, Westpac gave 35 million dollars to ASIC in a case where
Westpac breached the rules of lending money (Danckert, 2018).
4. Australian Securities Exchange- the Australian Securities Exchange works
Australia's essential national market for securities trading issued by recorded
organizations. A portion of securities is recorded on the Australian Securities
Exchange and in this manner Westpac have commitments to conform to the
Australian Securities Exchange Listing Rules that have statutory sponsorship
under Corporations Act. The Australian Securities Exchange has obligation
regarding the ignorance of recorded elements within the purview of Australian
Securities Exchange Listing Rules and for checking and upholding
consistency with the Australian Securities Exchange Operating Rules
(ASEOR) by merchandising, glade and resolution members. Westpac
Banking makes cash by loaning out its different types of borrowings. Stores
from clients will in general bear the most reduced hazard given the
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moderately steady sum accessible and financing cost. When in doubt, a bank
is viewed as less dangerous on the off chance that it holds a more elevated
amount of stores. Westpac Banking’s all out store dimension of 68% of its
absolute liabilities is inside the reasonable edge for money related
foundations which by and large has a proportion of half. This demonstrates a
reasonable dimension of the bank's more secure type of acquiring and a
judicious dimension of hazard (St, 2018).
5. Australian Competition and Consumer Commission- The ACCC is an
autonomous legal expert in charge of the guideline and forbiddance of hostile
to focused and out of line advertise practices, mergers and attainment in the
territory of Australia. Its wide goal is to regulate the Competition and
Consumer Act 2010 (Anon., 2010) and concerning enactment to brings
aggressiveness that is more prominent, reasonable exchanging, shopper
assurance and item security in the Australian economy. The job of ACCC’s in
shopper assurance supplements in Australian state and region purchaser
undertakings organizations that direct the uncalled for exchanging enactment
of their locales. There are four major banks at present in Australia and the
government of Australia has released new policy known as ‘four pillar policy’.
This policy states that it the responsibility of the four major banks including
Westpac to maintain appropriate and correct level of free and fair competition
in the market.
6. Australian Transaction Reports and Analysis Centre- Australian Transaction
Reports and Analysis Centre (AUSTRAC) supervise the consistency of
Australian announcing substances which include Westpac, inside
prerequisites of the Anti-Money Laundering and Counter-Terrorism Financing
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Act 2006 (Anon., 2006) and the Financial Transaction Reports Act 1988
(Anon., 1998).
These necessities include:
 actualizing schemes for distinguishing and observing clients, to
manage the dangers of tax evasion and psychological warfare
monetary advice;
 detailing doubtful issues, edge exchanges and universal subsidizes
exchange directions; and
 presenting a yearly consistence report.
AUSTRAC gives budgetary data to state and Australian government law
requirement, safety, social equity, income offices and certain universal partners.
There are probable chances that the products and services of Westpac can be used
in illegal tax evasion and giving assistance to terrorism. To stop or reduce the
chances of illegal tax evasion and giving assistance to terrorism, the laws applicable
in Australia both at national and local level mandates Westpac to do training,
processes and system for identification, managing and mitigating the risk. Complying
with the laws makes Westpac, a good corporate citizen. Failure to comply with the
relevant laws can lead to penalties, which include legal and regulatory actions
(Anon., 2019).
Westpac regards and advance human rights in all that it does as it causes them to
accomplish their vision to support clients, networks and individuals to thrive and
develop.
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International Treaties and Conventions
To support and to maintain goodwill and Principles of doing business, Westpac have
adopted its system of working from internationally acclaimed standard such
 International Bill of Human Rights- it consist of Universal Declaration of
Human Rights, the International Covenant on Economic, Social and Cultural
Rights and the Covenant on Civil and Political Rights
 International Labour Organisation Declaration on Fundamental Principles and
Rights at Work (Anon., 2019)
While applying the above mentioned norms, Westpac pursues globally
acknowledged systems developed by:
 United Nations Guiding Principles on Business and Human Rights
 United Nations 2030 Agenda for Sustainable Development
 Organisation for Economic Co-operation and Development (OECD)
Guidelines on Multinational Enterprises
 International Labor Organization Tripartite Declaration Concerning
Multinational Corporations and Social Policy
Westpac additionally bolster the accompanying business guidelines:
 United Nations Global Compact
 Equator Principles
 Principles of Responsible Investment
The standards and rules set out in our Position Statement applies to all Westpac
Group brands and auxiliaries and goes about as a kind of perspective position for the
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workers, clients, joint-adventure accomplices, providers, contractual workers and
redistribute suppliers, and the more extensive network.
To address human rights, Westpac center our due ingenuity forms around:
 Economic and business interest.
 Fair wages and working conditions.
 Freedom of affiliation.
 Anti-segregation, badgering and tormenting.
 Workplace decent variety, openness and adaptability.
 Accessible administrations and innovation.
 Health, security, security and prosperity, in the working environment, network
and on the web.
 Privacy and the accumulation, use and revelation of individual data.
 Financial, instructive, work environment, social and Indigenous incorporation.
 Community rights including:
o The rule of free, earlier and educated assent for Indigenous people group
affected by choices or activities that influence their property, region and
common asset.
o Access to solid conditions, sustenance security, access to water and
sanitation (United States Securities and Exchange Commission, 2012).
Lined up with position explanations and other open responsibilities, Westpac have a
zero resilience center around:
 Unlawful oppression clients, to people or different gatherings with whom
Westpac have dealings.
 All types of constrained, dealt and necessary work and child labour.
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 Illegal land obtaining/land snatching (Keating et al., 2008).
The standards of Westpac are implanted in the strategies, articulations, systems and
activity designs that help everyday tasks. These accommodate their continuous due
constancy forms that apply all through esteem chain. Supporting the related
arrangements, articulation, systems and activity plans is a way to deal with risk
management, group-level methodologies and theme based activity plans.
Westpac’s Board-affirmed Risk Management Strategy and hazard class systems
assume a job in deciding how we regard human rights. For instance, Westpac
respects human rights that are installed in local laws through Compliance
Management Framework. Apart compliance with local laws, oversee human rights
chance, being the threat of goodwill or money related setback due to powerlessness
to see or address material existing or rising human rights issues, as a sort of
manageability chance under Sustainability Risk Management Framework.
Various Group-level systems add to how we regard and advance our striking human
rights. These include:
 Group vital needs of execution discipline, administrative initiative,
computerized change, directed development and workforce unrest.
 Group Sustainability methodology and supporting divisional and local
manageability techniques.
 Social Impact Framework, which incorporates an attention on Helping out
during need, and Investing in monetary prosperity and more prominent
success.
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 National Action Plans including the Australian Accessibility, Financial
Inclusion, and Reconciliation plans
Moreover, Westpac also look to create associations with partners that regard and
advance human rights, including providers, business and network accomplices that:
 Are focused on straightforwardness in their administration structure and
exercises.
 Engage usefully with partners to address concerns.
 Responsibly oversee maintainability dangers and openings related all the
more comprehensively with their exercises.
Westpac proactively draw in with partners to develop comprehension of their desires
and to raise the mindfulness and comprehension of human rights. This is upheld by
multi-channel complaint components including:
 Whistle-blower Protection Policy – With concern-raising instruments (counting
secretly) for workers, secondees, contractual workers and advisors (Anon.,
2019).
 Privacy and Complaints Management Policies – With client input and
objections the board components, including through email
[e-mail].
 Customer Advocate – Who is free and engaged to determine issues for
clients; can topple choices made by our inner question goals process; and
can successfully tie us to client cure without the requirement for CEO
endorsement.
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 Group Sustainability group – Who are available to all individuals from people
in general for inquiries and remark on our way to deal with human rights,
including by means of email [e-mail].
Some portion of the Westpac ethics is that on the off chance that we misunderstand
things, at that point we set things back on track. For instance, Westpac’s Service
Promise bolsters their emphasis on improving measures of administration and
putting the clients at the focal point of what they do. This incorporates a model of
strengthening for the people of the company to settle on choices considered to be to
the clients’ advantage.
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Bibliography
Anon., 1998. Financial Transaction Reports Act. [Online] Available at:
https://www.legislation.gov.au/Details/C2017C00399 [Accessed 16 April 2019].
Anon., 2006. Anti-Money Laundering and Counter-Terrorism Financing Act. [Online]
Available at: https://www.legislation.gov.au/Details/C2019C00011 [Accessed 16 April
2019].
Anon., 2010. Competition and Consumer Act. [Online] Available at:
https://www.legislation.gov.au/Details/C2011C00003 [Accessed 16 April 2019].
Anon., 2018. Westpac acknowledges APRA discussion papers on future revisions to
the capital framework and leverage ratio for ADIs. [Online] Available at:
https://www.westpac.com.au/about-westpac/media/media-releases/2018/20-january/
[Accessed 17 April 2019].
Anon., 2019. AML/CTF - Westpac Group policy. [Online] Available at:
https://www.westpac.com.au/about-westpac/westpac-group/corporate-governance/
aml-counter-terrorism/aml-group-policy/ [Accessed 16 April 2019].
Anon., 2019. Human rights. [Online] Available at:
https://www.westpac.com.au/about-westpac/sustainability/our-positions-and-
perspectives/human-rights/ [Accessed 16 April 2019].
Anon., 2019. Westpac Group Code of Conduct. [Online] Available at:
https://www.westpac.com.au/docs/pdf/aw/Westpac_Group_Code_of_Conduct_Augu
st_2011.pdf [Accessed 16 April 2019].
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Anon., 2019. Westpac in Australia. [Online] Available at:
https://www.westpac.com.au/about-westpac/global-locations/westpac-australia/
[Accessed 16 April 2019].
Chronican, P., 2007. Westpac Banking Corporation. [Online] Available at:
https://www.westpac.com.au/content/dam/public/wbc/documents/pdf/aw/ic/
WBC_070305_PWC.pdf [Accessed 16 April 2019].
Danckert, S., 2018. Judge tears up $35m settlement between ASIC and Westpac in
lending case. [Online] Available at: https://www.smh.com.au/business/banking-and-
finance/judge-tears-up-35m-settlement-between-asic-and-westpac-in-home-loan-
case-20181113-p50fon.html [Accessed 16 April 2019].
Do, H., Tilt, C.A. & Tilling, M.V., 2007. Corporate Social Disclosure by Westpac
Banking Corporation: A study of social imoact reports. [Online] Business Conference
Papers Available at: https://researchonline.nd.edu.au/cgi/viewcontent.cgi?
article=1005&context=bus_conference [Accessed 16 April 2019].
Evans, B., 2019. The case for RBA rate cuts. [Online] Available at:
https://www.westpac.com.au/news/in-depth/2019/02/the-case-for-rba-rate-cuts/
[Accessed 16 April 2019].
Keating, B., Quazi, A., Kriz, A. & Coltman, T., 2008. University of Wollongong:
Research Online. In pursuit of a sustainable supply chain: Insightsfrom Westpac
Banking Corporation, [Accessed 16 April 2019].
St, S.W., 2018. Have You Considered These Key Risks For Westpac Banking
Corporation (ASX:WBC)? [Online] Available at:
https://simplywall.st/stocks/au/banks/asx-wbc/westpac-banking-shares/news/have-
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you-considered-these-key-risks-for-westpac-banking-corporation-asxwbc-2/
[Accessed 16 April 2019].
United States Securities and Exchange Commission, 2012. Westpac Banking
Corporation. [Online] Available at:
https://www.sec.gov/Archives/edgar/data/719245/000110465912076970/a12-
26429_120f.htm [Accessed 16 April 2019].
Westpac Banking Corporation Annual Report 2010, 2010. The Westpac group:
Annual Report 2010. [Online] Available at:
https://www.westpac.com.au/content/dam/public/wbc/documents/pdf/aw/ic/
WBC2010_Annual_Report_ASX.pdf [Accessed 16 April 2019].
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