Banking Day – BankingDay

A parliamentary committee has delivered a damning review of Australias insolvency system, calling for an independent and comprehensive review that addresses the system as a whole. The Parliamentary Joint Committee on Corporations and Financial Services released its report this week, Corporate Insolvency in Australia, saying the system is overly complex, difficult to assess and creates unnecessary cost and confusion for both debtors and creditors. The report said: Few parties seem satisfied with the system as it stands. Unsecured creditors are frustrated by low returns in insolvency proceedings. Debtors, particularly small businesses, believe opportunities for restructuring are lacking. System costs are excessive. The committee found that…

Read the full article at: https://www.bankingday.com/call-for-review-of-insolvency-system

Category: RestructuringBy Insolvency Advisory Accountants July 13, 2023

Banking Day – BankingDay

The Australian insolvency system is dominated by debtors with relatively small debts, many of whom are vulnerable, the Australian Financial Security Authority says. According to AFSA data, there are 60,000 people in the personal insolvency system currently, with a total of A$18 billion of liabilities. Of those, 52.7 per cent have less than $50,000 of debts. AFSA chief executive Tim Beresford said: So think about it, we are talking about someone with two credit cards and probably five to eight buy now pay later arrangements. Debtors with debts between $50,000 and $100,000 make up 17.9 per cent of individuals in the insolvency system. Only a quarter of insolvent debtors have more than $100,000 in liabilities. Among creditors, the Australia…

Read the full article at: https://www.bankingday.com/small-debts-trigger-majority-of-insolvencies

Category: BankruptcyBy Insolvency Advisory Accountants May 24, 2023

Banking Day – BankingDay

Personal insolvency numbers have jumped by more than 50 per cent since the start of the year, as high interest rates and inflation finally start to have an impact on household budgets. The Australian Financial Security Authority reported that there were 921 new personal insolvencies in March up from 796 in February and 772 in January. AFSA said that where it could identify the industries an insolvent individual worked in, the most common were construction, health care and social assistance, and retail trade. Of the 579 people declared bankrupt in March, 193 were involved in a business. Personal insolvency numbers remained low last year, despite the stresses on households. In the 2021/22 financial year, personal insolvencies hit a histor…

Read the full article at: https://www.bankingday.com/personal-insolvencies-spike

Category: BankruptcyBy Insolvency Advisory Accountants May 1, 2023

Banking Day – BankingDay

ANZ shareholders approved a restructuring of the bank at a scheme meeting yesterday, which will see the groups banking and non-banking business split into two separate companies.

Under the proposal approved at a scheme meeting yesterday, the two businesses will operate under the control of a non-operating holding company.

ANZ chair Paul OSullivan said banking will remain ANZs core business. The restructure will allow it to develop new businesses or partner with other companies without the constraints of banking regulation.

OSullivan said: Customers are demanding more from their banks better services, better products and better digital solutions. Consistent with this traditional banking is facing significant disruption from new non-bank…

Read the full article at: https://www.bankingday.com/anz-restructure-approved

Category: RestructuringBy Insolvency Advisory Accountants December 16, 2022

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