Code of Banking Practice - setting standards for good banking practice

The Australian Code of Banking Practice sets standards of good banking practice when dealing with individual or small business customers, prospective customers and their guarantors.

All banks that adopt the Code are contractually bound by their obligations under the Code. National Australia Bank adopted the revised Code at the end of August 2003.

The original Code was published in 1993. The 2003 version of the Code, takes into consideration comments from the independent Code Reviewer, consumer and small business groups, and technological changes that have occurred since the Code was introduced.

NAB is a strong supporter of the Code and considers the revised Code to be an important outcome for the banking industry and NAB customers across Australia.

On 14 May 2004 the Australian Bankers' Association, of which NAB is a member, announced some minor changes to the Code to finetune some guarantor disclosure practices, mainly for company directors acting as guarantors for their company. NAB will adopt these minor changes on 31 May 2004.

Areas that the Code of Banking Practice covers

The four key areas of the Code are:

  • Our key commitments and general obligations
  • Disclosures
  • Principles of conduct
  • Resolution of disputes, monitoring and sanctions

Key benefits of the Code of Banking Practice

Key benefits include:

  • Inclusion of small business customers for the first time
  • Establishment of an external monitoring body (CCMC) that investigates and reports on breaches of the Code
  • Better defined standards of disclosure to potential guarantors before they commit to guaranteeing someone else's debt
  • Obligations regarding feedback, chargebacks, dealing with customers in financial difficulty, provision of credit, joint debtors and debt collection

Modifications to the Code of Banking Practice from 31 May 2004

Minor changes effective from 31 May 2004 include:

  • Option for company directors, who are acting as guarantors for their company, to choose whether or not to receive some of the guarantor disclosure information
  • Option for company directors, who are acting as guarantors for their company, to choose to wait until the next day to sign the guarantee

View a copy of the Code of Banking Practice (HTML Version)
Download a copy of the Code of Banking Practice (PDF Version)

Note: To download the Code of Banking Practice you will require Acrobat® Reader

Further Information

View a copy of the Family Law Guidelines related to property proceedings.

The Code of Banking Practice is also available at our branches and outlets (except Australia Post).

Further information about the Code of Banking Practice and Frequently Asked Questions are available at the Australian Bankers Association website.

A recent media release can also be viewed.