Provision of credit Inquiry

The CCMC is pleased to release the report of its Own Motion Inquiry into Code-subscribing banks’ compliance with the provision of credit obligations under clause 27 of the Code of Banking Practice.

The Inquiry focused on unsecured credit and the CCMC found that banks generally have robust, and often complex, processes in place to assess applications for unsecured credit in compliance with the Code.

However, the CCMC did identify potential issues, including matters related to the collection and verification of current customer information.

Information provided to the Inquiry suggests that the majority of applications for unsecured credit are processed using automated systems. The CCMC has stated that up-to-date information regarding a customer’s financial position should be incorporated into the credit assessment, whether processed manually or by an automated system. The CCMC considers that having a full and current picture of a customer’s financial circumstances is fundamental to complying with the Code obligations.

The CCMC has made nine recommendations in its Report, which:

  • support Code compliance, and
  • can assist banks to continuously work towards improving standards of practice and service in the banking industry as anticipated by clause 3.1(a) of the Code.

To view the CCMC’s findings and recommendations in full, please open the report via the link below:


CCMC Provision of credit Own Motion Inquiry Report (PDF, 803 KB)