Identify the problem of Banking Scandal in Australian Banks

Australian banks facing problems as the banks are going to face scandals of being bankrupted and they had faced also an issue that they did money laundering under banking activities. Westpac is that financial services bank in Australia included in Big Four banks and it is among the oldest and first starting banks of Australia. It has 40,000 people as employees and having the support of 14 million customers by providing them with extra efficient services in keeping their money secured of people. It is a business and consumer bank as well as serving almost more than 9 million of their customers. Westpac uses to deliver institutional, government, commercial and corporate financial services at a broad range as Westpac use to operate under specialized product terms.

Having industry relationships having expert knowledge providing debt capital markets, financial transactional banking services and customers supporting services operating in Australia, UK, USA, Australia and Asian centres as well. Westpac has 197 branches nationwide having 3000 shareholders and 1.5 million customers as they have started 7 branches in New Zealand at 1861 in New South Wales. To small and medium services businesses they use to provide dominant banking services and all the Organisational and banker New Zealand governmental services to people. Currently, it is the 2^nd largest bank in New Zealand as it was merged after ANZ and National bank of New Zealand.

Determined relevant information

The banking sector in Australia is facing a lot of issues as they are lacking in the performance they have to show actually. The financial activity of money that explain the channelling of funds to the borrowers for the investment purpose and run a smooth and effective financial system in the economy at balance level. A bank is a form of institution that perform, different functions with money like an exchange, lending and keeping. A bank is a place that creates money for people against their money and offers debts to others in exchange for money. The bank is a kind of organization that run its operations with principles according to the accumulation of money that idle temporarily of the public and offers others for their expenditures in advance. Banking is just like a business which lending money and accepts deposits for the public. It works as a financial institution for the people. They lend money to the public in the form of loan and perform the functions of safeguarding the money (Schroeder, 2019).

Unsound Risk oversight of Banking Scandal in Australian Banks

The risk in this scandalizing is that they will lose their identity as they will have a bad reputation and they will not be able to get more worth as they must have it. The risk factor always remains there but the main thing is that bank has to take care of the scandals they are going to face in the banking sector of them. The nation’s banking worth is going to make it effective in working and it is allowing the things to be more effective and more appropriately working under specified tasks. The overhauling recommendations have been made by the government to regulate the workings of banks as their executives are being paid by the government for the cases they use to resolve the issue. The Westpac Bank in Australia is caught in over 23 million breaches of anti-money as they use to regulate them with the assentation and the payments are going to exploit. The framework is the basic structure of any system that explains how the system is going to work and what strategies and methods it is going to follow to perform its functions.

 It explains all its functions and operations in an effective manner that help to explain all the major areas of the system, so banking framework is the complete system that helps the banks to run all its operations according to its specified rules and regulations. The framework of banks explains all its operations and functions that how the functions are going to perform, how the operations accomplish and what results going to generate after the accomplishment of operations. As we know that bank is the dealing of money so its framework explains that how the money is going to collect and utilize for a beneficial purpose, as for lending how the banks give loans to other people and what criteria are going to follow to get back that amount of loan. So inflow and outflow of money within the banks all happen according to its framework. Every country has its framework because every country is going to follow its own rules and regulations and its complete formatting depend on the economy of the country. Every bank has to follow its framework because without framework no any banks can run its operations because its whole system is depending on its framework (SMYTH, 2019).

Director is not independent of Banking Scandal in Australian Banks

The director of the bank is involved in this scandal as they are going to get this under its supervision because not without its supervision nothing can happen and this makes the things more appropriate and more demanding. The CEO of the bank and the compliance head has been designed due to this issue and they are going to sue on this as they have to give an answer that what they did or what had happened in their presence. Banking model explains that in what direction the bank is going to perform its functions and adopt what methods. Different banks are going to use a different type of models according to their functions and operations. Banking model helps the banks to run its business effectively. In past ten to twenty years ago, the banks followed the old and simple method of generating income and they have no any additional services that help the banks in generating income but now the time is going to change. Now banks are following different models to earn maximum revenue and provide more facilities and services to its all users.

Never waste the money of people and try to utilize the money is the productive way so according to this approach, banks have to follow some kind of models that include lending, margin, fee, high leverage and investment. Banks is the best way of making money according to the business point of view. Many little right things must be done to make the banking successful. The difference is going to appear between top performer banks and average banks with few examples like profitable cline management, fantastic underwriting, a solid sale culture (Butler, 2019).

Enumerate options of Banking Scandal in Australian Banks

They have to return the money in a way that they must be able to provide the backup amount which they use to do laundering with it. The overall working use to say that one must be able to manage the amount as 41000 has been returned currently with them and they also agreed to pay further 700$ after investigations have been taken under them.

Assess and make preliminary decisions of Banking Scandal in Australian Banks

The decisions have been made by the higher authorities to fine them according to the issue they are facing and this makes the things to be more appropriate and many of the times it happens that they are planned to refund the owners 3.5 million which is the Australian’s history biggest fine ever. As we discuss in the above part that banking framework is the essential parts of every banking system because without these frameworks no bank can properly run its system. Now we are going to discuss how the framework is legally adopted by the banks. The legal framework is very important for every bank because it ensures the mandate and necessary powers of the banks according to law. Banking company's ordinance 1962, state bank of Pakistan 1956, the foreign exchange regulation act 1947, the microfinance institution ordinance 2001 and many others are laws that are implemented in the banks according to their nature of operations and legally give benefit to the customers.

Legal implementation is very much important because without legal authority no business can run and involve money and consider illegal. So legal framework is a basic part of the development of the banking system and establishes all the rules and regulation of the banks that it has to follow in any case having engaging marketing, building the product and provide good customer service. Australia has a great banking system. With many correspondents, U.S. banks, Australia has strong credit system. Bank of Australia is the main bank of Australia that has the authority to establish any other banks in Australia. Two major private banks of Australia are UniCredit Group and Intesa Sanpaolo banks that has a great ratio of assets (DERWIN, 2020).

These are the major source of credit information and capture more than 50 %of the total bank's asset of Australia. In financing capital investment, the US bank branches also assist. Australia banking sector faces many downfalls in the middle nineties and decreases the number of banks more than 50 % due to many liquidity reasons. To boost the international competitiveness of the Italian banking sector, the government of Australia taking steps to encourage the process of consolidation and continue to many next years.

Different banks in Australia have great importance. The central bank of Australia has a supervisor and regulatory authority as part of the European system of central banks and the monetary policy role. It gives more focus on the soundness and safety of the institution according to its jurisdiction. Australia 'banks give more attention to the stability of the financial system of the country. These banks have enforcement powers and rulemaking authority and for financial system show complete competitiveness, efficiency and stability (Scholars, 2019).

Different category of banks is also present in Australia and they can deal with all sorts of business transactions in all manner. Banks of Australia include cooperative banks, Limited companies or mutual cooperative. The banking system of Australia includes many different features like interlocking directorates, cross-shareholdings and concentrated ownership. When the financial crises are present, it is very important to make stable the banking system of the country

Because the working of the Australia banks is used like banks of other countries but the main issues are that the financial condition. The financial condition of the banks was not too much stable and has to manage the country financial issues according to its requirement. There are lots of people who are willing to make transactions with the banks and now the banking sector of Australia moves at stability condition due to effective strategies and services that provided by the banks to its all customers. As we know that the Australia banking system has strong credit facilities so the government of Australia provide complete support to its banks related to its transactions (Bbc.com, 2020).

List reasons explicitly of Banking Scandal in Australian Banks

According to the international point of view, the banking model used in Australia includes four different types that include specialized, retail oriented, investment-oriented and diversified. These four models help to explain the different functions of the banks are also explaining the basic working and function criteria. The models are developing according to the functionality of the banks. Because many other elements explain what is the actual purpose of the banks and how they can improve the economy level by stable the economic condition of the financial system of the country

Australia banks want to provide more investment opportunities and can beat the Germany and France banking market because high competitors also follow the same strategies and for this purpose, the financial market-facing very tough competition. Because people want to secure their business and generate profit through their transaction of banks, provide more opportunities to expand their business and also attract more customers who have finance by having a no better option to utilize their money.

Self-correction of Banking Scandal in Australian Banks

The bankrupted system must be kicked out of the issues that rea badly facing by the Australia banking's as this will make their performance level highly disapproved and people will not be able to trust their banking anymore. Banking system includes many different features that belong to profit generation and make a stable position in the international market. The main source of revenue includes interest income, service income, facility provider, decision-making and investment. so the different banking models of Australia also promote its function and operations’ and try to provide maximum benefits to its all customers according to its requirement and for managing the financial condition of the country (ABC.net.au, 2013).