APCA's Retail Run Implementation Steering Committee and associated Working Groups have made solid progress in developing initial drafts of the Code of Conduct – Retail Run (the Code) and the Good Practice Guide – Retail Run (the Guide). As mentioned in the last Payments Monitor, the purpose of the Code and Guide is to assist financial institutions respond to panic cash withdrawals in the remote event of a 'retail run' in Australia.
The Steering Committee and Working Groups have broad member representation, including representatives from the large banks, some regional banks and building societies, as well as the Australian Bankers' Association, Cuscal and Indue. Additionally, the Reserve Bank is represented on both groups, and provides valuable input on the structure and content of the Code and Guide from a regulator perspective.
APCA has also consulted widely among members to ensure that the Code and Guide represent best industry practice. The aim is to provide ADIs with a thorough guide to help them plan for a retail run, without imposing onerous and prescriptive requirements. Moreover, it is important to strike a balance where cooperation between industry participants is encouraged while not impinging on individual business interests.
The next step in the development phase of the project is to liaise with representatives from the Australian Prudential Regulation Authority (APRA) to gain feedback on the approach taken so far. The project is on track for completion by the end of 2010.