The Australian Competition and Consumer Commission (ACCC) is proposing conditional authorization for Australian Banking Association (ABA) members to make agreements on basic accounts and agricultural loan interest under the banking code of practice, according to a Monday statement by the regulator.
AMP (ASX:AMP), ANZ Group Holdings (ASX:ANZ, NZE:ANZ), Bank of Queensland (ASX:BOQ), Bendigo and Adelaide Bank (ASX:BEN), Commonwealth Bank of Australia (ASX:CBA), Macquarie Group (ASX:MQG), National Australia Bank (ASX:NAB), Suncorp Group (ASX:SUN), and Westpac Banking (ASX:WBC, NZE:WBC) are part of the association.
The proposal would allow ABA member banks to offer low- or no-fee basic accounts with features like no account-keeping fees, free statements, and protections against overdraft and dishonor fees for eligible low-income customers, the regulator said.
The ACCC's draft determination includes conditions, requiring banks to avoid charging interest on informal overdrafts, annually contact eligible customers, and to report on the uptake of these accounts, per the statement.
Shares of National Australia Bank, ANZ Group, and Bendigo and Adelaide Bank rose nearly 1% in recent Tuesday trade, while shares of Westpac fell about 1% in New Zealand.
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