With all eyes on the banking royal commission, I understand why people are outraged at some of the individual cases being reported. Having a long history in banking and corporate lending, I am far from shocked, but no less outraged at the consequences suffered by some bank clients. In fact, what is being reported is only the tip of the iceberg, and don’t get me started about lending with the likes of external rental companies (which are frequently financed by banks under undisclosed Principal and Agency Agreements, so you don’t actually know when you sign the documentation that it’s a bank behind the deal).
One case we heard was about a farmer who had never missed a payment, yet he asked how is it that his bank could call up his loans and sell the farm from underneath him? Sadly, this is not uncommon, and, dare I say, happens more often than anyone without a banking background would know.
In 2009 – just under 10 years ago – I wrote an article in Club Life titled ‘Don’t Bank On It’, where I reflected on my history in corporate banking and the lending merry-go-round. Sadly, I am old enough to have witnessed a few 360-degree rides, and have little doubt that in another 10 years’ time we will be talking about the same issues again.