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Banks, consumer advocates and other stakeholders, including brokers, have been invited to assess the effectiveness of the Banking Code of Practice (Banking Code) as part of an independent review led by former Australian Securities and Investments Commission deputy chair Peter Kell.
The Banking Code sets standards for how subscribing banks deal with customers, including in areas such as small business lending and complaints handling.
Feedback is being sought on a consultation paper examining how effectively the code is working and where improvements could be made.
Interested organisations and individuals have until 11 December 2026 to provide feedback, which will inform an interim report due to be released for further consultation in March 2027.
Kell said the review would provide an opportunity for the community to share their experiences with banks and the protections offered under the code.
“The Banking Code plays an important role in setting standards for how banks treat their customers,” he said.
“This review will consider whether the code is delivering the outcomes customers expect and where changes could strengthen its effectiveness.”
Small business lending
One area under review is the code’s commitments to small business and farming customers, particularly the provisions in Part B5 covering small business lending.
These provisions outline the factors banks consider when assessing small business loan applications, the notice requirements and steps lenders must follow before enforcing loans or deciding not to extend them, and the rules governing the appointment of external experts, such as valuers, investigative accountants and insolvency practitioners.
The review is seeking feedback on whether these commitments are helping banks deal appropriately with small business customers.
It is also examining the effectiveness of an expanded definition of small business, which Broker Daily reported on last year.
Ongoing process
The review will also examine emerging issues that have arisen since the previous review of the code, with input from key stakeholders including consumer groups, small business organisations, regulators and the banking industry.
The final report is due to be provided to the Australian Banking Association on 30 June 2027, with the ABA to respond to its recommendations by 11 December 2027.
[Related: Updated Banking Code of Practice adds further protections for consumers]
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