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You can find the current article at its original source at https://www.theguardian.com/australia-news/live/2016/oct/06/banking-inquiry-nab-and-westpac-bosses-face-questions-as-focus-turns-to-donations-live
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| Version 11 | Version 12 |
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| Banking inquiry: Westpac has 'no plans' to change political donations policy – live | |
| (35 minutes later) | |
| 6.06am BST | |
| 06:06 | |
| MP Craig Kelly has asked if a consumer with $500 of credit card debt misses a $25 minimum monthly repayment, how much they will be charged? $9. He then wants to know how much the lateness actually costs the bank, and the Westpac execs take it on notice. | |
| Westpac’s Brian Hartzer says the bank has “no plans” to increase its fees now ANZ has won a high court case in defence of a $35 late payment fee. | |
| Kelly wants to know how high fees could go if $35 isn’t an unlawful penalty, Hartzer said it’s a “hypothetical” because Westpac had decreased its fee to $9. | |
| 6.01am BST | |
| 06:01 | |
| MP Craig Kelly has asked whether Westpac faced legal proceedings for late credit card fees. | |
| Chief Financial Officer, Peter King, said the proceedings were discontinued after ANZ won a similar case in the high court. He takes on notice whether the bank asked for costs in the case. | |
| 5.59am BST | |
| 05:59 | |
| Adam Bandt has asked about a couple who banked with Westpac for over 20 years and had an inflated income in a loan application. | |
| Chief executive Brian Hartzer said he can’t go into detail but he denies that the bank was responsible for inflating their income. | |
| We have no incentive and no desire to lend people more than they can afford. | |
| Asked to rule out anyone else’s incomes being altered or inflated, Hartzer said: “I can’t say it’s never happened, but not to my knowledge.” | |
| 5.46am BST | |
| 05:46 | |
| "No plans" by Westpac to change political donations policy | |
| Greens MP Adam Bandt has asked about $1.8m in donations in recent years by Westpac to the Labor and Liberal parties. | |
| Westpac chief executive Brian Hartzer said its policy is “open and transparent”. | |
| We don’t give cash donations to political parties. We support political parties and the political process by attending conferences and the like. We disclose everything we donate fully to the [Australian Electoral Commission]. | |
| Asked about NAB’s answer that it wanted to avoid the perception of a conflict by stopping donations, Hartzer said it has “no plans” to change its donations policy. | |
| Updated | |
| at 5.46am BST | |
| 5.41am BST | |
| 05:41 | |
| Liberal MP Scott Buchholz has asked why credit card customers that never missed payments still pay interest rates up to 19%. | |
| Risk is assessed on a “mass basis”, Westpac chief executive Brian Hartzer explains, because it’s not practically possible to assess individual risk for each business customer. | |
| He accepts Westpac could reduce credit card interest rates and still be profitable. | |
| 5.29am BST | 5.29am BST |
| 05:29 | 05:29 |
| Brian Hartzer has come up with the magic number of what an ATM transaction costs: 20 cents. He doesn’t have a figure for how much a transaction by a customer from another bank costs to hand. | Brian Hartzer has come up with the magic number of what an ATM transaction costs: 20 cents. He doesn’t have a figure for how much a transaction by a customer from another bank costs to hand. |
| He said Westpac absorbs the cost of the ATM network for its customers, which explains why only customers of other banks pay a fee. The foreign fee “defrays the cost but comes nowhere near” paying for the whole network. | He said Westpac absorbs the cost of the ATM network for its customers, which explains why only customers of other banks pay a fee. The foreign fee “defrays the cost but comes nowhere near” paying for the whole network. |
| It’s a “reasonable assumption” that the fee is higher than the marginal cost of the transaction by customers of other banks, Hartzer said. | It’s a “reasonable assumption” that the fee is higher than the marginal cost of the transaction by customers of other banks, Hartzer said. |
| 5.24am BST | 5.24am BST |
| 05:24 | 05:24 |
| Matt Keogh has returned to asking about the UK’s new laws requiring individual accountability of executives. He suggests senior managers are responsible for training and systems around incorrect financial advice, not just the financial planners who give it. | Matt Keogh has returned to asking about the UK’s new laws requiring individual accountability of executives. He suggests senior managers are responsible for training and systems around incorrect financial advice, not just the financial planners who give it. |
| Westpac’s Brian Hartzer replies risk is inherent in investing and laws punishing innovation can have “unintended consequences”. He said: | Westpac’s Brian Hartzer replies risk is inherent in investing and laws punishing innovation can have “unintended consequences”. He said: |
| When they’ve been poorly advised, absolutely there should be consequences. But if people feel you can’t take risk because you’ll blame me and I’ll get a criminal penalty, a normal person would be much more reticent to give advice. | When they’ve been poorly advised, absolutely there should be consequences. But if people feel you can’t take risk because you’ll blame me and I’ll get a criminal penalty, a normal person would be much more reticent to give advice. |
| 5.17am BST | 5.17am BST |
| 05:17 | 05:17 |
| Labor’s Matt Keogh has gone on the attack claiming no part of the $2.7m short term incentive Brian Hartzer is paid is for “customer satisfaction”. | Labor’s Matt Keogh has gone on the attack claiming no part of the $2.7m short term incentive Brian Hartzer is paid is for “customer satisfaction”. |
| Hartzer said a net promoters’ score (customers’ willingness to recommend a product to others) is 10% of his score card and a number of other measures are about becoming a more service-oriented organisation such as technological innovation and people and culture. | Hartzer said a net promoters’ score (customers’ willingness to recommend a product to others) is 10% of his score card and a number of other measures are about becoming a more service-oriented organisation such as technological innovation and people and culture. |
| 5.12am BST | 5.12am BST |
| 05:12 | 05:12 |
| Treasurer consulted banks on tribunal before election | Treasurer consulted banks on tribunal before election |
| MP Matt Keogh has asked about consultation on a banking tribunal and when the idea was first raised. | MP Matt Keogh has asked about consultation on a banking tribunal and when the idea was first raised. |
| Westpac’s Brian Hartzer said there was a meeting in April or May with the heads of the banks and the treasurer about resolution of complaints and the tribunal was raised there. | Westpac’s Brian Hartzer said there was a meeting in April or May with the heads of the banks and the treasurer about resolution of complaints and the tribunal was raised there. |
| I’ve never had a long conversation about the tribunal. I’m not really aware of the details of what is recommended. | I’ve never had a long conversation about the tribunal. I’m not really aware of the details of what is recommended. |
| He said he supports consideration of gaps in accountability and improving the consumer complaints processes. | He said he supports consideration of gaps in accountability and improving the consumer complaints processes. |
| Updated | Updated |
| at 5.14am BST | at 5.14am BST |
| 4.55am BST | 4.55am BST |
| 04:55 | 04:55 |
| Chief executive Brian Hartzer said that Westpac has unconscious bias training for the top four layers of its management and will “continue to look at everything we can from the customer interface point of view to make sure women are very welcome”. | Chief executive Brian Hartzer said that Westpac has unconscious bias training for the top four layers of its management and will “continue to look at everything we can from the customer interface point of view to make sure women are very welcome”. |
| MP Julia Banks suggests the tribunal could mandate ethics and unconscious bias training to “provide benefits to consumers ... and ensure all employees across the bank are appropriately trained”. | MP Julia Banks suggests the tribunal could mandate ethics and unconscious bias training to “provide benefits to consumers ... and ensure all employees across the bank are appropriately trained”. |
| Hartzer has concerns with “more prescriptive regulation”. | Hartzer has concerns with “more prescriptive regulation”. |
| The more you prescribe what the bank does the more there are unintended consequences that have to be thought through carefully. | The more you prescribe what the bank does the more there are unintended consequences that have to be thought through carefully. |