99-701: National Australia Bank (abbreviated NAB , branded nab ) is one of the four largest financial institutions in Australia (colloquially referred to as " The Big Four ") in terms of market capitalisation , earnings and customers. NAB was ranked the world's 21st-largest bank measured by market capitalisation and 52nd- largest bank in the world as measured by total assets in 2019. As of January 2019, NAB operated 3,500 Bank@Post locations—including 7,000+ ATMs across Australia, New Zealand, and Asia—and served 9 million customers. NAB has an "AA−" long-term issuer rating by Standard & Poor's . National Australia Bank
198-566: A $ 6.5 million tri-generation plant at its main data centre. NAB became one of Australia's largest carbon neutral companies in September 2010. NAB ranked equal first among financial service companies in the Global 500 companies in the 2010 Carbon Disclosure Leadership Index. In 2013 NAB emerged as a sponsor of Australian rules football , both at grassroots and elite level. It supports Auskick , an initiative to improve young footballers, as well as
297-410: A bachelor's degree of Economics. He went on to complete a Master of Business Administration at Melbourne Business School in 1993 while working for Boston Consulting Group . He became a director of the group in 1997, and spent a year as co-managing director of its joint-venture investment company, Iformation . Fahour joined NAB in September 2004 as CEO Australia, and became an executive member of
396-667: A body called the Australian Financial Markets Association (AFMA) determined the BBSW rate. Since July 2017 the ASX calculates the rate. Until 2013, AFMA would every morning at 10am ask each of the "prime banks" what interest rates they will be offering or asking for that day. AFMA would then calculate the BBSW rate as the average of those quotes. Normally, the longer the term, the higher the offered rate. The system required some level of subjective judgement by
495-456: A branch in 1990), San Francisco (1984), Kuala Lumpur (1984), Athens (1984, closed 1989), Frankfurt (1985, closed 1992), Atlanta (1986), Bangkok (1986), Taipei (1986 upgraded to branch 1990), Shanghai (1988, closed 1990), Houston (1989) and New Delhi (1989). In 1987, NAB bought Clydesdale Bank ( Scotland ) and Northern Bank ( Northern Ireland and Republic of Ireland ) from Midland Bank . It rebranded Northern Bank branches in
594-653: A broader set of executive changes. As part of a strategy to focus NAB on its domestic markets, the bank listed its US subsidiary, Great Western Bank , on the New York Stock Exchange in October 2014 as part of an initial public offering . NAB sold its final 28.5% holding in Great Western in July 2015. In May 2015, NAB also confirmed it would demerge its Clydesdale and Yorkshire Bank business in
693-616: A bug bounty program, which offers a reward to security researchers who can find previously unknown vulnerabilities in the bank's system. Would be participants must have an "Elite Trust Score" on Bugcrowd. In 2008, NAB invested $ 33.5 million in corporate responsibility initiatives. Its target is to spend 1% of cash earnings before tax in this area. In 2009, NAB became the largest Fairtrade accredited workplace in Australia through purchasing Fairtrade tea, coffee and hot chocolate for their offices and retail branches. In March 2010 NAB stated it expected to save nearly $ 1 million in annual power costs from
792-676: A business renewal program, called "Future Ready". The program involved the implementation of a more customer-focused business model designed to capitalise on Australia Post's reputation as a trusted services provider. Under Fahour's direction, Australia Post had two consecutive years of profit growth (in FY2011 and FY2012) following steep profit declines in the preceding two years (FY2009 and FY2010), as Australian letter volumes started to decline. Further letter volume decline led to reduced profits in FY2013 and FY2014, with repeated calls from Fahour for
891-654: A business tagline, rather than as a business name, as they do not meet the criteria to be called a 'bank'. Top 10 Total Assets (2019-2023) There are other retail banks in Australia. These are smaller and often regional banks , including the Bendigo & Adelaide Bank , Suncorp Bank , the Bank of Queensland (including its retail arms ME Bank & Virgin Money. Other banks, such as Bankwest , St George Bank and Bank of Melbourne , are subsidiaries or alternate trading names of
990-415: A case-by-case basis and judged on its merits. There are a number of foreign subsidiary banks, however only a few have a retail banking presence; ING Bank (Australia) Limited (trading as ING ), HSBC Bank Australia (a subsidiary of HSBC ), Delphi Bank (formerly the 'Bank of Cyprus Australia', and in 2012 acquired by Bendigo & Adelaide Bank), Bank of Sydney (with a full banking licence since 2001) have
1089-840: A full banking licence. Foreign banks which do not wish to obtain a banking authority in Australia may operate a representative office in Australia for liaison purposes, but the activities of that office will be restricted. According to the Foreign Investment Review Board , foreign investment in the Australian banking sector needs to be consistent with the Banking Act , the Financial Sector (Shareholdings) Act 1998 and banking policy, including prudential requirements. Any proposed foreign takeover or acquisition of an Australian bank will be considered on
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#17327727895671188-572: A house that he bought in 2013 from Globe International co-founder Peter Hill for $ 20 million. The house was originally built for Sir James Frederick Palmer , the first Speaker of the Victorian Legislative Council and was later owned by the comic and entrepreneur George Coppin , before becoming a private school. Fahour and his family have made significant financial contributions to the Islamic Museum of Australia ,
1287-480: A leading US mortgage originator and servicer based in Florida , and most significantly, the acquisition in 2000 of MLC Limited (and related entities) for $ 4.56bn, one of the biggest mergers in Australian corporate history. NAB encountered a difficult period in the period 2000–2005. In 2000, NAB sold Michigan National Bank to ABN AMRO , then in 2001 sold HomeSide's operating assets for US$ 1.9b to Washington Mutual ,
1386-582: A liquidity crisis. The United States has enacted the Foreign Account Tax Compliance Act . (FATCA) which came into effect on 1 July 2014, which aims to prevent tax evasion by US tax residents who hold foreign accounts by requiring foreign financial institutions to report details and interest income to the US Internal Revenue Service (IRS). Australia has signed an Intergovernmental Agreement (IGA) with
1485-525: A nine month attempt to purchase Axa Asia Pacific . This attempt was blocked twice by the Australian Competition & Consumer Commission . The first time, in April 2010, was because the regulator believed that the merger would cause a substantial lessening of competition in the retail investment platform market . NAB subsequently lodged a revised bid which aimed to address these concerns but
1584-515: A number of ATM networks operating in Australia, the largest five of which are: the Commonwealth Bank - Bankwest network (with over 4,000 machines), NAB - rediATM network (with over 3,400 machines), Westpac -St George-BankSA and Bank of Melbourne network (with over 3,000 machines), ANZ (with over 2,600 machines) and Suncorp (with over 2,000 machines), and others. Financial institutions are linked via interbank networks . The use of
1683-777: A number of other banks over the years, these two banks merged in 1982 to form the National Commercial Banking Corporation of Australia, which was renamed the National Australia Bank . In 1835 a London-based bank called the Bank of Australasia was formed that would eventually become the ANZ Bank . In 1951, it merged with the Union Bank of Australia , another London-based bank, which had been formed in 1837. In 1970, it merged with
1782-542: A pilot with 23 jobs from the accounts payable department in Melbourne going to Bangalore, India in an agreement with Accenture . Later that year, it sold Northern Bank and National Irish Bank to the Danish Danske Bank . Over 200 additional jobs had been sent offshore by 2006. As part of the culture change program, a new Australian head office was purpose built at Docklands in Melbourne. This building
1881-634: A presence, but few have a retail banking presence. The central bank is the Reserve Bank of Australia (RBA). The Australian government’s Financial Claims Scheme guarantees deposits up to $ 250,000 per account-holder per ADI in the event of the ADI failing. Banks require a bank licence under the Banking Act 1959 . Foreign banks require a licence to operate through a branch in Australia, as do Australian-incorporated foreign bank subsidiaries. Complying religious charitable development funds are exempt from
1980-519: A risk-based approach, develop and maintain a compliance program, and report to Australian Transaction Reports and Analysis Centre certain cash transactions as well as suspicious matters and file annual compliance reports. There have been calls in recent times for an added level of regulation of banks following lending, foreign exchange, and financial planning controversies between 2009 and 2017, highlighted in 2016 Senate inquiries. Referring to white collar crime, ASIC's Chairman Greg Medcraft said 'This
2079-626: A small number of branches. Foreign banks have a more significant presence in the Australian merchant banking sector. Formally, there is extensive and detailed regulation of Australia's banking system, split mainly between the Australian Prudential Regulation Authority (APRA) and Australian Securities & Investments Commission (ASIC). The Reserve Bank of Australia also has an important involvement. However, in practice, banks in Australia are self-regulated through external dispute resolution (EDR) schemes,
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#17327727895672178-430: A surplus of cash would miss out earning interest on the cash, even if it's for only one night. Other banks may find that they had more money going out than coming in, and the bank must borrow cash to cover the shortfall. To meet its liquidity obligations, the bank with the shortfall would borrow from a bank with a surplus in the interbank lending market . Depending on the bank's assessment of the type of shortfall and costs,
2277-819: Is a Lebanese Australian businessman. He was the managing director (MD) and CEO of Latitude Financial Services , and was formerly MD and CEO of Australia Post , and CEO Australia of the National Australia Bank (NAB). Fahour was born in Lebanon in 1966 and migrated to Australia with his parents, Abdel and Siham, in 1969. His parents became successful businesspeople in Australia and have eight children. He studied at St Joseph's College in North Fitzroy and later attended Redden College in Preston . In 1987, he graduated from La Trobe University in Melbourne with
2376-794: Is a bit of paradise, Australia, for white collar [crime]'. In December 2017 the Australian Government established the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry to inquire into and report on misconduct in the banking, superannuation and financial services industry. The interim report from the Royal Commission prompted the industry to revamp its banking code. The code has been criticised as needing to be legally binding, strictly liable and breaches criminal. During
2475-545: Is characterised by its open plan layout and was officially opened in October 2004. After Cameron Clyne became CEO in 2009, the Docklands building became the global headquarters replacing 500 Bourke Street. By 2006, NAB had turned its fortunes around, reporting an industry record $ 4.3 billion profit and winning two local Bank of the Year awards. It also had a major reform which included the refurbishment of all of its branches, and
2574-538: Is dominated by four major banks : Commonwealth Bank , Westpac , Australia & New Zealand Banking Group and National Australia Bank . There are several smaller banks with a presence throughout the country which includes Bendigo and Adelaide Bank , Suncorp Bank , and a large number of other financial institutions , such as credit unions , building societies and mutual banks , which provide limited banking-type services and are described as authorised deposit-taking institutions (ADIs). Many large foreign banks have
2673-494: Is dominated by four major banks: Commonwealth Bank, Westpac, ANZ Bank and the National Australia Bank. The top four banking groups in Australia ranked by market capitalisation at share price 1 December 2017: The Customer Owned Banking Association (formerly known as Abacus Australian Mutuals) is the industry body representing the more than 100 credit unions, building societies and mutual banks that constitute
2772-581: Is expected to be live in mid-2023. The following individuals have been appointed to serve as chief executive: The following individuals have been appointed to serve as chairman of the board: The National Australia Bank Group is organised into eight divisions, spread across two geographic regions. NAB is a large user of the Siebel and Teradata CRM systems. While NAB has received recognition as an early adopter and leader in CRM ( Customer Relationship Management )
2871-471: The Australian mutual or cooperative banking sector. Collectively, Australian customer-owned banks service 4.6 million customers or 'members' (as they are mutual shareholders in the institutions), with total assets of over A$ 138 billion. The ten largest customer-owned banks in Australia are: Great Southern Bank is Australia's largest customer owned bank having achieved this status with
2970-589: The Australian Competition & Consumer Commission (ACCC). The front face of the regulation of financial institutions and financial advisers are the various EDR schemes, the most popular of which is AFCA. ASIC is responsible for the approval of EDR schemes, all of which must comply with ASIC Regulatory Guide 139. Banks are also subject to obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 as "reporting entities". They are required to identify and monitor customers using
3069-503: The Bank State Branch (BSB) identifier was introduced in the early 1970s with the introduction of MICR on cheques to mechanise the process of data capture by the banks as well as for mechanical sorting and bundling of physical cheques for forwarding to the payer bank branch for final cheque clearance . Since then, BSBs have been used in electronic transactions (but is not used in financial card numbering). EFTPOS technology
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3168-593: The Basel II guidelines. All financial institutions regulated by APRA are required to report on a periodic basis to APRA. Certain financial intermediaries, such as investment banks (which do not otherwise operate as ADIs) are neither licensed nor regulated under the Banking Act and are not subject to the prudential supervision of APRA. They may be required to obtain licences under the Corporations Act 2001 or other Commonwealth or State legislation, depending on
3267-940: The Commercial Bank of Australia to form Westpac. There were many other bank mergers and acquisitions throughout Australia's banking history. The boom and bust of the 1980s was a turbulent period for banks, with some establishing leading market positions, while others being absorbed by the larger banks. Beginning in the 1980s, several building societies sought to convert to banks, but were required to demutualise before they were permitted to do so. This included NSW Building Society, which became Advance Bank , St George , Suncorp , Metway Bank, Challenge Bank , Bank of Melbourne and Bendigo Bank . A change in regulations allowed building societies and credit unions to become banks without having to demutualise, and several including Heritage Bank have converted since 2011 while retaining their status and structure as mutual organisations. In 1990,
3366-631: The Commonwealth Bank in 1911, which by 1913 had branches in all six states. In 1912, it took over the State Savings Bank of Tasmania (est. 1902) and did the same in 1920 with the Queensland Government Savings Bank (est. 1861). As with many other countries, the Great Depression of the 1930s brought a string of bank failures. In 1931, Commonwealth Bank took over two faltering state savings banks:
3465-612: The Government Savings Bank of New South Wales (est. 1871) and the State Savings Bank of Western Australia (est. 1863). In 1991, it also took over the failing State Bank of Victoria (est. 1842). As a response to the Great Depression, banking in Australia became tightly regulated. Until the 1980s, it was virtually impossible for a foreign bank to establish branches in Australia; with the consequence that Australia had fewer banks compared to countries such as
3564-821: The NAB Cup (an Australian Football League pre-season competition), the NAB AFL Rising Star award; and the AFL National Draft . Other significant sporting sponsorships included the Socceroos , the 2006 Commonwealth Games , and was the main shirt sponsor of the South Sydney Rabbitohs between 2008 and 2010. Support is also given towards community group volunteers around Australia. In recent years, NAB has provided financial support and relief to drought affected farmers and helped in
3663-657: The State Bank of Victoria in 1990 and Bankwest in 2008. Westpac acquired the Challenge Bank in 1995, Bank of Melbourne in 1997, and St George Bank in 2008. The Australian government's direct ownership of banks ceased with the full privatisation of the Commonwealth Bank between 1991 and 1996. There was also increased competition from non-bank lenders, such as providers of securitised home loans. A category of authorised deposit-taking institution (ADI)
3762-567: The United States and Hong Kong . Moreover, banks in Australia were classified as either savings banks or trading banks . Savings banks paid virtually no interest to their depositors [Greenwood, STEERglobal states that in 1960s Perth 6% was paid on Commonwealth Bank savings accounts] and their lending activities were restricted to providing mortgages . Many of these savings banks were owned by state governments. Trading banks were essentially merchant banks , which did not provide services to
3861-513: The neobank 86 400 for $ 220 million and subsequently merge it with UBank . In May 2021, NAB completed its sale of its advice, platforms, superannuation and investments and asset management businesses to IOOF Holdings . As part of the MLC Wealth Transaction, NAB retained the companies that operated the advice businesses. In September 2021, NAB temporarily rebranded their logo to JAB to promote vaccines for COVID-19 . In
3960-556: The 1980s, several building societies sought to convert to banks, but were required to demutualise before they were permitted to do so. This included NSW Building Society, which became Advance Bank , St George , Suncorp , Metway Bank, Challenge Bank , Bank of Melbourne and Bendigo Bank . A change in regulations allowed building societies and credit unions to become banks without having to demutualise, and several including Heritage Bank have converted since 2011 while retaining their status and structure as mutual organisations. In 1990,
4059-454: The BBSW system. There arises from time to time a situation when there are insufficient funds in the interbank lending market to enable the banks to balance their books. Some banks, for example, may be experiencing a bank run or may be withholding funds from the market expecting a heightened demand in the near future. The Reserve Bank's role includes ensuring liquidity in the banking system, including acting as lender of last resort in times of
National Australia Bank - Misplaced Pages Continue
4158-604: The Commonwealth ... and not redeemed'. These Acts put an end to the issue of notes by the trading banks and the Queensland Treasury. Also in 1910, the Australian pound was first issued as the legal tender in Australia. Now, the Reserve Bank Act 1959 expressly prohibits persons from issuing bills or notes payable to bearer on demand and intended for circulation. The federal government established
4257-574: The Commonwealth Bank performed some central bank functions, which were greatly expanded during World War II . This arrangement caused some discomfort for the other banks, and as a result the Reserve Bank of Australia was created on 14 January 1960 and assumed the central bank functions previously performed by the Commonwealth Bank, including managing the currency, the money supply and exchange control. Banks have adopted new technologies in order to reduce operating costs. The rollout of automated teller machines (ATMs) commenced in 1969. There are currently
4356-506: The English, Scottish and Australian Bank Limited, another London-based bank, formed in 1852, in what was then the largest merger in Australian banking history, to form the Australia and New Zealand Banking Group Limited. A speculative boom in the Australian property market in the 1880s led to the Australian banking crisis of 1893 . This was in an environment where little government control or regulation of banks had been established and led to
4455-496: The Prime Minister and a taxpayer, I've spoken to the chairman today. I think that salary, that remuneration, is too high." On 23 February, Australia Post announced that Fahour has resigned as MD and CEO of Australia Post, and would step down from the role in July 2017. Upon resigning from CEO of Australia Post, in July 2017 Fahour joined BCG Digital Ventures as non-executive chairman for Asia-Pacific . In 2011, Fahour
4554-476: The RBA the oversight of ADI's and other financial institutions in Australia, e.g., banks, credit unions , building societies , friendly societies , general insurance and reinsurance companies, life insurance and most members of the superannuation industry . The Payments System Board (PSB) was also created, to maintain the safety and performance of the payments system . At the time, consumer credit in Australia
4653-541: The Republic of Ireland to National Irish Bank and changed both banks' logos from that of the Midland Bank. In 1990, NAB bought Yorkshire Bank ( England and Wales ). In 1992, NAB purchased the Bank of New Zealand , which became a subsidiary of the Australian bank, but retained local governance, with a New Zealand board of directors. At some point, a business entity known as Bank of New Zealand in Australia (BNZA)
4752-669: The Treasurer, Hon Scott Morrison MP, initiated the Open Banking Review. Open Banking is to encourage more efficiency in the market, create new opportunities for market entrants, encourage competition and give customers greater control over their data. This was finalised in March 2018. In 2018 APRA created a restricted ADI framework. The framework is designed to encourage new entrants to the banking industry, particularly small firms with limited financial resources, to navigate
4851-724: The UK, through an initial public offering. The business was partially floated on the London Stock Exchange and Australian Securities Exchange under a new holding company, The CYBG plc , in February 2016, with the remaining shares distributed to NAB's shareholders. In July 2019, Ross McEwan was appointed group chief executive officer and managing director, after resigning from the Royal Bank of Scotland in April of that year. In January 2021, NAB announced plans to acquire
4950-717: The United States which sets out rules to enable Australian financial institutions to report to the Australian Taxation Office (ATO) which in turn passes the information to the IRS. FATCA affects US citizens, US tax residents and certain types of organisations that are controlled by them. To comply with FATCA, Australian banks ask customers to declare their US tax status. Between white settlement in Sydney in 1788 and 1817, there were no banks nor much currency in
5049-489: The appointment of Ahmed Fahour as the CEO of Australia in September 2004. On 20 February 2009 Fahour stepped down from the principal board and group executive committee. In 2005, NAB announced a cut of 2,000 Australian jobs as part of a global cost-cutting program with the intention of cutting around 4,200 positions – about 10.5% of its total workforce globally. It began to outsource back office positions offshore, beginning with
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#17327727895675148-648: The area of postal communications, to the banking and investment sectors, and as a supporter of improved multicultural relations. In October 2018, Fahour was appointed MD and CEO of Latitude Financial Services . Fahour says the best way to counter Islamic extremism is to give Muslim young people jobs and opportunities. He says that extremists misinterpret Islamic teachings such as the Quranic injunction , 'whoever kills an innocent person, it's as if he has killed all of mankind'. Fahour lives in Hawthorn, Melbourne, in
5247-405: The bank may take out an overnight loan, the interest rate of which is based on the cash rate , which is set by the Reserve Bank (RBA) every month (currently 0.10%); or else take out a "short duration loan", known as "prime bank paper", for a term of between one and six months and whose interest rate is called the "bank bill swap rate" (BBSW), which is set by the commercial banks. Until July 2017
5346-548: The banking licence requirement. Australia has a sophisticated, competitive and profitable financial sector and a strong regulatory system. For the 10 years ended mid-2013, the Commonwealth Bank was ranked first in Bloomberg Riskless Return Ranking a risk-adjusted 18%. Westpac Bank was in fourth place with 11% and ANZ Bank was in seventh place with 8.7%. The four major banks are among the world's largest banks by market capitalisation and all rank in
5445-450: The banks, because there was a rapidly changing market on multiple broker screens. AFMA changed the method of calculating the BBSW rate to be based on a multimarket electronic feed of live bids and offers. ASX would later add the use of market transactions in addition to these live bids and offers. Besides affecting the BBSW rate, many other financial rates are based on it. The Australian Securities & Investments Commission (ASIC) monitors
5544-435: The big four banks. Bankwest (CBA), Bank of Melbourne, St George and BankSA are all trading names of Westpac. Foreign banks wishing to carry on a banking business in Australia must obtain a banking authority issued by APRA under the Banking Act , either to operate as a wholesale bank through an Australian branch or to conduct business through an Australian-incorporated subsidiary. Foreign banks engaging in retail banking require
5643-462: The biggest single-day fall in its share price in 21 years, wiping over A$ 7 billion from the stock's value. In October 2008, NAB launched a branchless direct bank trading separately as UBank under the leadership of Greg Sutherland and Gerd Schenkel. In January 2009, Cameron Clyne became CEO, and began a strategy of reputation change, wealth management and a focus on domestic markets. As part of this strategy, NAB's underweight retail bank – under
5742-693: The board. In February 2009, he stepped down from the principal board and group executive committee. Fahour has held directorships of Nasdaq Dubai, Rip Curl and has been a trustee of the Melbourne Cricket Ground . He was invited by the Prime Minister and Treasurer to be the interim CEO of the Australian Business Investment Partnership. In December 2009, Fahour was announced as the new MD and CEO of Australia Post (a federal government-owned business), commencing in February 2010. There, he commenced
5841-616: The broker channel. The purchase also included the PLAN, Choice, and FAST mortgage aggregation businesses and approximately 17.5% in Homeloans Ltd. In June that year it paid A$ 825m ($ 660m:£401m) for UK insurer Aviva 's Australian wealth management businesses, including their Navigator platform. NAB beat off competition from AMP for Navigator. news In July 2009 NAB acquired an 80% stake in the private wealth management division of Goldman Sachs JBWere , for A$ 99m. In December 2009 NAB began
5940-823: The clean-up of flood affected in Queensland and Victoria. NAB has also sponsored the Sheikh Fehmi El-Imam Scholarship, designed to help strengthen the links between NAB and the Muslim community and enables an undergraduate student to continue post-graduate studies in finance and economics. The National Australia Bank is the AFL Women's current and inaugural naming rights partner. Banking in Australia Banking in Australia
6039-455: The colony. The first bank in Australia was the Bank of New South Wales , established in Sydney in 1817. During the 19th and early 20th century, the Bank of New South Wales opened branches throughout Australia and Oceania: at Moreton Bay ( Brisbane ) (in 1850), then in Victoria (1851), New Zealand (1861), South Australia (1877), Western Australia (1883), Fiji (1901), Papua (now part of Papua New Guinea ) (1910) and Tasmania (1910). It
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#17327727895676138-422: The consumer banking business from Citigroup Pty Ltd (Citi), an Australian branch of Citibank . On 19 January 2023, NAB announced that it would create a stablecoin called the AUDN that would be pegged to the Australian Dollar , and that the digital asset would be on the Ethereum network. The objective is to streamline cross-border banking transactions, and will also be used for trading carbon credits . AUDN
6237-424: The course of every day, each bank executes a large number of transactions, such as payroll, retail and business purchases, credit card payments, etc. Some involve cash (or its equivalent) coming into the bank and others of cash going out. Banks do not have a reliable way of predicting what or how much those transactions will be. At the end of each day banks must reconcile their positions. The bank that finds itself with
6336-479: The development of SSL encrypted technology in mid 1990s opened the way to E-commerce . Telephone banking was introduced in the 1990s, with internet banking being introduced after 1995 and mobile banking after the 2010s. Bain, Research Now and Bain along with GMI NPS surveys in 2012 found that 27% of Australians have had mobile banking transactions in the previous three months. These innovations have resulted in significant shifts in banking in Australia away from
6435-429: The failure of 11 commercial banks, even the National Bank of Australasia. Until 1910, banks could issue private bank notes, except in Queensland which issued treasury notes (1866–1869) and banknotes (1893–1910) which were legal tender in Queensland. Private bank notes were not legal tender except for a brief period in 1893 in New South Wales. There were, however, some restrictions on their issue or other provisions for
6534-429: The first half of 2022, NAB relocated its global headquarters from 800 Bourke Street Docklands to a new natural light and greenery purpose built 39 storey building at 395 Bourke Street. The move also replaced National Bank House at 500 Bourke Street. The bank currently has 2 main buildings for employees at 700 Bourke Street Docklands and the new 395 NAB Place. On 1 June 2022, National Australia Bank Limited (NAB) acquired
6633-487: The four major banks from acquiring smaller competitors. In 2000, CBA acquired the Colonial Group , which had emerged as a major bank–insurance combine in the 1990s, after the Colonial Mutual insurance group took over State Bank of New South Wales in 1994. The Commonwealth Bank also acquired the State Bank of Victoria in 1990 and Bankwest in 2008. Westpac acquired Challenge Bank in 1995, Bank of Melbourne in 1997, and St George Bank in 2008. Currently, banking in Australia
6732-472: The general public. Because of these and numerous other regulatory restrictions, other forms of non-bank financial institutions flourished in Australia, such as building societies and credit unions . These were regulated by state laws and were subject to less stringent regulations, could provide and charge higher interest rates, but were restricted in the range of services they could offer. Above all, they were not allowed to call themselves "banks". From 1920,
6831-489: The government adopted a " four pillars policy " in relation to banking in Australia and announced that it would reject any mergers between the big four banks . This is long-standing policy rather than formal regulation, but it reflects the broad political unpopularity of further bank mergers. A number of commentators have argued that the "four pillars policy" is built upon economic fallacies and works against Australia's better interests. The four pillars policy does not prevent
6930-496: The government adopted the "four pillars policy" in relation to banking in Australia and announced that it would reject any mergers between the four big banks. The four pillars policy, however, has not prevented the four major banks from acquiring smaller competitors. In 2000, CBA acquired the Colonial group , which had emerged as a major bank–insurance combine in the 1990s, after the Colonial Mutual insurance group took over State Bank of NSW in 1994. The Commonwealth Bank also acquired
7029-431: The government to support fundamental reform of the letter service to prevent Australia Post incurring future losses. In March 2012, Fahour announced plans to create the "Australia Post Digital MailBox", as part of the postal corporation's strategy "to build a sustainable communications business, both physically and digitally". The Digital MailBox was given a soft launch at Parliament House, Canberra, in October 2012 and it
7128-406: The largest US savings and loan company, as well as the mortgage unit's loan-servicing technology and operating platform. The foreign currency trader fraud was the catalyst for the resignations of CEO Frank Cicutto and Chairman Charles Allen. The resignations were preceded by a Board revolt where Catherine Walters emerged as a whistle blower citing serious culture issues at the company having led to
7227-423: The leadership of Lisa Gray – attempted to increase market share by competing on price and cutting fees. Initially denting earnings in the division, the strategy produced mixed results over the medium term, with cash earnings, market share and customer satisfaction rising, but operating margin and cost to income ratio worsening since it began in 2009. In line with the strategy, NAB attempted to differentiate itself from
7326-549: The licensing process. Eligible entities can conduct a limited range of business activities for two years while they progress towards an unrestricted status. APRA announced and authorised the first restricted ADI, Volt Bank , on 7 May 2018. On 1 September 2022, APRA announced it had revoked Volt Bank Limited's (Volt) authorised deposit-taking institution (ADI) licence under the Banking Act 1959. Ahmed Fahour Ahmed Fahour AO ( Arabic : أحمد فاعور ; born 1966)
7425-608: The most prominent of which is the Australian Financial Complaints Authority (AFCA). APRA is responsible for the licensing and prudential supervision of authorised deposit-taking institutions (ADIs) (banks, building societies, credit unions, friendly societies and participants in certain credit card schemes and certain purchaser payment facilities), as well as life and general insurance companies and superannuation funds. APRA issues capital adequacy guidelines for banks which are consistent with
7524-449: The nature of their business activities in Australia. ASIC has responsibility for market integrity and consumer protection and the regulation of certain financial institutions (including investment banks and finance companies). However, ASIC does not actually investigate any issues or propose any regulations that concern consumer protection, this authority is delegated to the EDR schemes and
7623-483: The other "Big 4" Australian banks in a large, national public relations campaign centred around a theme of "breaking up" with the other banks on Valentine's Day 2011. The campaign received both a positive and negative reception. It also attracted swift competitive responses from other major banks. The campaign won an advertising award at Cannes. In 2009, NAB acquired the mortgage business of Challenger Financial Services for $ 385 million, in order to boost its market share in
7722-560: The protection of the public. Queensland treasury notes were legal tender in that state. Private bank notes and treasury notes continued in circulation until 1910, when the federal Parliament passed the Australian Notes Act 1910 which prohibited the circulation of state notes as money and the Bank Notes Tax Act 1910 imposed a prohibitive tax of 10% per annum on 'all bank notes issued or re-issued by any bank in
7821-401: The public. Foreign exchange controls were abolished and the Australian dollar was permitted to float from December 1983. Banking in Australia is notable by the small number of large banks in the market. Much of this concentration is the result of bank acquisitions. English, Scottish and Australian Bank was acquired by the ANZ Bank in 1970. In 1982, Bank of New South Wales merged with
7920-444: The public. Banking in Australia is notable by the small number of large banks in the market. Much of this concentration is the result of bank acquisitions. English, Scottish and Australian Bank was acquired by the ANZ Bank in 1970. In 1982, the Bank of New South Wales merged with the Commercial Bank of Australia to form Westpac. There were many other bank mergers and acquisitions throughout Australia's banking history. Beginning in
8019-501: The rebranding from Credit Union Australia on 1 June 2021. Previously Heritage Bank was Australia's largest customer-owned bank, having changed its name from Heritage Building Society in December 2011. A number of credit unions and building societies changed their business names to include the word 'bank', to overcome adverse perceptions of smaller deposit-taking entities. For example, in September 2011 Bank Australia (formerly Bankmecu)
8118-806: The replacement of signage in and around National branches and buildings, being changed from 'National' to 'nab'. In May 2007, NAB announced that it would delist from the New York Stock Exchange , and this took place in August 2007. NAB delisted from the London and Tokyo exchanges in 2006. In March 2008, NAB announced that it would send maintenance and support for some core banking applications to India through an offshoring arrangement with Infosys and Satyam , affecting another 260 employees. On 25 July 2008, NAB's announcement of an additional A$ 830 million provision associated with deterioration in US real estate markets triggered
8217-442: The string of failures. Frank Cicutto was CEO of NAB from 1999 to 2004. The Australian economic environment during his leadership was stable and productive after 17 consecutive years of economic growth since 1992, averaging 3.3 per cent per annum. In February 2004, John Stewart was appointed CEO of NAB following the sacking of Cicutto. Stewart proceeded with a far reaching re-organisation of the company along regional lines leading to
8316-564: The system was reinvigorated in 2004–5 as part of the broader turnaround to support the new focus on cross-selling. In 2006, NAB was named the winner of the IFS/Cap Gemini Financial Innovation awards for its CRM system, internally called "National Leads". On 25 November 2010, NAB suffered a system malfunction resulting in the failure of accounts processing. As a result, around 60,000 banking transactions were lost, and had to be manually recovered. The malfunction
8415-511: The top 25 globally for safest banks. They are also some of the most profitable in the world. Australia's financial services sector is the largest contributor to the national economy, contributing around $ 140 billion to GDP a year. It is a major driver of economic growth and employs 450,000 people. Deregulation of the financial sector commenced in the mid-1960s, with the removal of the distinction between and separation of trading and savings banks. Building societies were allowed to take deposits from
8514-439: The use of bank branches, and resulting in branch closures and staff cuts. The banking industry was slowly deregulated. In the mid-1960s, the distinction between and separation of trading and savings banks was removed and all banks were allowed to operate in the money market (traditionally the domain of merchant banks ), and banks were allowed to set their own interest rates. Building societies were allowed to take deposits from
8613-409: Was a dispute between the banks whether Bankcard (or credit cards in general) should be permitted into the proposed EFTPOS system. At that time several banks were actively promoting MasterCard and Visa credit cards. Store cards and proprietary cards, such as fuel cards and Bartercard , were shut out of the new system, though they use compatible technology. The widespread acceptance of credit cards and
8712-468: Was absorbed by NAB. Further acquisitions followed – which at the time had about a 26% market share in the market, and Michigan National Bank (MNB) in 1995. NAB had earlier rationalised its operations in the US and closed its offices in Atlanta, Chicago, Dallas, Houston, and San Francisco in 1991. This period of rapid expansion through acquisition concluded with the purchases in 1997 of HomeSide Lending,
8811-592: Was announced as Australia's first customer-owned bank. Three teachers' credit unions have become known as 'banks'; namely, RACQ Bank (formerly the Queensland Teachers' Credit Union), Bank First (formerly the Victoria Teachers' Credit Union), and Teachers Mutual Bank (formerly Teachers Credit Union). The Police & Nurses' Credit Union began trading as P&N Bank in March 2013, and some credit unions are electing to use 'mutual banking' as
8910-711: Was appointed the Australian Government 's special envoy to the Organisation of Islamic Cooperation . In 2014, Fahour was appointed chairman of Pro-Pac Packaging Group (PPG). The same year he was appointed an adjunct professor at La Trobe Business School and became a fellow of the Australian Institute of Company Directors . In 2017 Fahour was appointed an Officer of the Order of Australia for distinguished service to business, particularly in
9009-478: Was by far the most dominant bank throughout Australia until into the 1960s. The Commercial Banking Company of Sydney was established in 1834, and the National Bank of Australasia established in Melbourne in 1858, and set up branches in other Australian colonies: Tasmania (in 1859), Western Australia (1866), New South Wales (1885) and Queensland (1920), and a London branch (1864). After acquiring
9108-428: Was caused by a corruption of an irreplaceable system file. This issue has been dubbed by some commentators as one of the biggest failures in the history of the Australian banking system. Under Cameron Clyne's leadership, NAB began to upgrade its core banking platform in a project dubbed "NextGen". The project involves the replacement of its legacy systems which are up to 40 years old with an Oracle -based solution. UBank
9207-491: Was created for a corporation which is authorised under the Banking Act 1959 to take deposits from customers. The change formalised the right of non-bank financial institutions – such as building societies and credit unions – to accept deposits from non-members. Following the Wallis Committee Report , the Australian Prudential Regulation Authority (APRA) was established on 1 July 1998 to take over from
9306-626: Was formed as National Commercial Banking Corporation of Australia Limited in 1982 by the merger of National Bank of Australasia and the Commercial Banking Company of Sydney . The resulting company was subsequently renamed National Australia Bank Limited. The expanded financial base of the merged entity triggered significant offshore expansion over ensuing years. Representative offices were established in Beijing (1982), Chicago (1982), Dallas (1983), Seoul (1983, upgraded to
9405-536: Was introduced in 1984. Initially, only the banks' existing debit and credit cards could be used, but in 1985, the ATM (Financial) Network was created to link EFTPOS systems to provide access for all customers. Cards issued by all banks could then be used at all EFTPOS terminals nationally, but debit cards issued in other countries could not. Prior to 1986, the Australian banks organized a widespread uniform credit card, called Bankcard, which had been in existence since 1974. There
9504-641: Was officially opened to Australian consumers for the first time in May 2013. In June 2014, Fahour was widely criticised for his $ 4.8 million salary, whilst sacking 900 staff. He was once Australia's highest-paid public servant, receiving a total salary package of $ 5.6 million (including a $ 1.2 million bonus) in 2016. Under Fahour's leadership, in 2015 Australia Post recorded its first full-year loss in over 30 years, with half-year profits down some 56 percent. In February 2017, Australian Prime Minister Malcolm Turnbull criticised Fahour's $ 5.6 million salary saying, "As
9603-399: Was primarily loaned in the form of installment sales credit . The arrival of hundreds of thousands of readily employable migrant workers under the post-war immigration scheme, coupled with intense competition amongst lenders, discouraged proper investigation into buyers. Concerns about the possibly inflationary impact of lending created the first finance companies in Australia. In June 2017
9702-522: Was rejected a second time in September of that year. The Axa deal's drawn out process drew criticism for the bank's underperformance. NAB's poor 2012 financial results called its strategy into question: net profit dropped by 22% compared to the previous year. In 2014, the NAB Melbourne Government announced that Cameron Clyne would be succeeded as CEO by Andrew Thorburn, NAB's New Zealand head. In August 2014, Lisa Gray left NAB as part of
9801-549: Was reported to be the first beneficiary of this project. In total, the project was expected to be completed in 2014 and cost $ 1 billion. As of April 2014, NAB's "NextGen" program was said to suffer from "growing problems". In July 2020, NAB signed an agreement with Microsoft to further develop its multi-cloud computing strategy including the migration of key applications to the cloud while accelerating development and innovation. In September 2020, The National Australia Bank partnered with crowdsource security firm Bugcrowd to launch
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