KOI

Trimester 2, 2017

FIN202–Financial Institutions

ASSIGNMENT–INDIVIDUAL

“REGULATION OF AUSTRALIAN BANKS – PAST, PRESENT AND FUTURE’

Due date: To TUTOR: No later than11.00 am, Tuesday, 19 September, 2017

Topic:

Your topic is:

“REGULATION OF AUSTRALIAN BANKS – PAST, PRESENT AND FUTURE”

You are require d to consider the history of bank regulation in Australia, the current regulators and their roles, recent governance and other concerns, and if deemed desirable formulate recommendations for further regulatory action.

SOME BACKGROUND THOUGHTS: The first Australian bank commenced in the nineteenth century, others were formed later, and such regulation as existed was vested in the states or colonies where they carried out business.

Towards the end of the nineteenth century, some colonies, especially Victoria,experienced a massive land boom and bust, followed by a deep depression, during which a number of colonial banks failed.

Following Federation in 1901, the regulation of banks became a Commonwealth responsibility, legislation was subsequently enacted, a central bank was created and since then no Australian banks have failed.

After World War II, the view emerged that if the Government controlled the banks it could control the economy. Hence, strict rules applied to bank lending, interest rates, banks’ holdings of government securities, etc. The RBA was created as the central bank, charged with oversight of the banks.

Over time, and following world trends and the Campbell Committee report in the 1970s, the mood changed and deregulation became the norm.

In the 1980s and 1990s, some weaknesses in the regulatory structure emerged and “re-regulation” was introduced, with the establishment of ASIC and APRA, taking over and expanding certain functions of the RBA. Other bodies operate.

Over the last 15 years, further concerns have emerged, with banks being the focus of charges of weaknesses in governance, with issues such as inappropriate financial advice by banks’ financial planners, disputes over the settlement of insurance claims and more recently, charges that one major bank had not reported or taken action over massive illegal money laundering.

Presentation and Lodgment

Further details on the presentation and lodgment requirements for the Assignment and penalties for late lodgment, along with the rubric for assessment purposes, are set out in the Subject Outline (SO), pages 7- 8.

Within the context of section (e) of Presentation on page 8 (SO), it is recommended that the body of your essay contain 5 numbered sections, in line with the Marking rubric, viz., Introduction; Research (a literature survey); Analysis; Recommendations; and Conclusion.

You should follow the following typing conventions:

  • Times New Roman font (at minimum , 12 pitch)
  • 1.5 line spacing
  • Top, bottom, left and right margins to be at least 2.5 cms from the edge of thepage
  • A4 paper; and
  • Length – 2,500 words + / - 10%.

Research and Referencing

You should begin by seeking references relating to the topic and subject contentvia Google or another search engine.It is suggested that you familiarize yourself with the Australian banking system by reading appropriate chapters in the text-book.You will need to discover at least 6other references.This should include at least one other book and one journal article. Search the web-sites suggested in the text and the SO.

Use Harvard referencing!

Marking Guide

See Subject Outline, pages 7 – 8.Remember plagiarism = severe penalties.

Submission of Assignments.

A soft copy is to be submitted to Moodle by Sunday, 17 September, 2017 at 5.00 pm. Please submitto your Tutor a hard copy, including a KOI Cover Sheet(see Moodle) and TURNITIN validation, showing the Similarity score, bothat thefront- and a rubric page (see Subject Outline) at the back – of your Assignment If these pages are not submitted, penalties will apply (1 mark per page omitted).

***Keep a soft copy of Assignment in case of misadventure.***

Dr Mervyn Fiedler

Subject Co-ordinator, KOI, FIN202 12 August, 2017.

1