BCCC oversight drives improvements in bank practices and customer protections
Banking Code Compliance Committee
The Banking Code Compliance Committee (BCCC), the independent body that monitors banks’ compliance with the Banking Code of Practice, has released its 2025–26 Annual Report, highlighting where bank practices have improved and where further action is needed.
Over the past year, the BCCC’s monitoring and oversight contributed to stronger banking practices and customer protections, including improvements in the management of deceased estates, basic bank accounts and Bank@Post services.
The report also highlights the BCCC’s increased use of compliance data to identify emerging issues and hold banks accountable for meeting their Code commitments, alongside its continued focus on customers experiencing vulnerability.
BCCC Chair Sean Hughes said the past year demonstrated the important role independent oversight plays in driving practical changes in bank practice.
“Most banks reported strengthening their systems, staff training and monitoring for deceased estates. Banks also corrected problems with basic account information and fees, and all banks in our Bank@Post review made Code and complaints information easier for customers to find,” Mr Hughes said.
“These changes matter because they affect customers directly. Our job is to identify where practice falls short, push for improvement and keep checking that banks have addressed the problems we find.”
The Annual Report also highlights how the BCCC strengthened its use of compliance data to identify problems and target its monitoring.
Under the more detailed reporting framework introduced with the 2025 Banking Code, banks reported 9,326 breaches, with a financial impact on customers of $27.7 million.
Further analysis found that 84% of breaches reported from July to December 2025 were attributed to staff-related causes, up from 75% in the previous reporting period. This is also higher than in earlier periods, when banks attributed 72% of breaches to human error-related factors from July to December 2024 and 75% from January to June 2024.
The sustained prevalence of staff-related causes suggests banks need to look beyond training alone and consider whether stronger supervision, processes and controls are needed to prevent breaches from recurring.
The stronger framework gives the BCCC a clearer view of where problems occur and how they are detected, helping it identify patterns and direct greater scrutiny towards higher-risk areas.
Mr Hughes said the data helped the Committee decide where to focus its work.
“The numbers tell us more than how many breaches have occurred. They help us identify patterns, see where problems may not be detected early enough and focus our oversight where it can have the greatest impact,” Mr Hughes said.
“Better information also helps us test whether recurring breaches point to weaknesses in systems, processes, training or controls.”
The BCCC also continued its work to strengthen protections against financial elder abuse. A joint review with the Customer Owned Banking Code Compliance Committee found significant gaps in the information banks provide, including limited translated and Easy English material and very little information tailored to older First Nations customers.
The review made eight recommendations aimed at improving the information and support available to customers, while helping banks better identify signs of elder abuse and intervene earlier to reduce the risk of harm.
“Financial elder abuse can be difficult to recognise, so customers need clear information to help them identify warning signs, understand issues such as powers of attorney and know where to get specialist support,” Mr Hughes said.
“Our review identified where banks could do better and set out clear recommendations to strengthen the support available to customers. An important part of our role is identifying weaknesses and driving changes that better protect customers.”
In 2026–27, the BCCC will continue to strengthen its oversight and focus on issues affecting customers. Key priorities include:
- finalising its inquiry into how banks support customers and communities affected by branch closures
- examining protections for customers when debts are sold
- reviewing how banks communicate decisions about financial-difficulty assistance
- contributing to the independent review of the Banking Code and the BCCC’s effectiveness
- further developing how it measures the impact of its monitoring
- progressing work towards named reporting.
Mr Hughes added, “Our focus in the coming year is on areas where customers may be most exposed to harm, including branch closures, debt sales and financial difficulty decisions. The Committee is determined to ensure that banks meet the standards the community expects.”
About us:
The purpose of the BCCC is to monitor and drive best practice Code compliance.
To do this, it:
- examines banks’ practices
- identifies current and emerging industry-wide problems
- recommends improvements to bank practices
- sanctions banks for serious compliance failures, and
- consults and keeps stakeholders and the public informed.
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