Joseph Healy - Breaking the Banks: What Went Wrong with Australian Banking

PRAISE FOR BREAKING the BANKS

It is rare to read such great insights on the future of banking, written in plain English, from a lifetime banking practitioner. Joseph, as co-founder and joint leader of Judo Bank, will deliver considerable opportunities for clients in the huge and unsatisfied small to mid-sized banking market.

JOHN DAHLSEN, FORMER ANZ DIRECTOR

This book makes a powerful argument for professionalism in banking and a reminder that banking needs to always focus on long-term outcomes for customers, the bank and the economy.

CHRIS WHITEHEAD, CEO AT FINSIA

This is a very worthwhile, well-informed book, by an experienced banker.

PROFESSOR ALLAN FELS AO FORMER CHAIR, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Healy brings decades of experience in senior roles in the UK, New Zealand and Australian banks. He asks fundamental questions that demand answers, and places responsibility squarely where it belongs: with bank senior management and boards of directors. Breaking the Banks focuses on the fundamental fissures in Australian banking and how to reconceive and rebuild the banks to fulfil their original purpose.

PROFESSOR THOMAS CLARKE, UTS BUSINESS

Joseph Healy is a well-seasoned banker, academic and entrepreneur but, most importantly, a thinker. Credentials that make this book very timely and a key contribution to the current and ongoing debate on the evolving financial system.

JOHN FRASER, FORMER SECRETARY TO THE TREASURY

Joseph Healy has written a blueprint for building a sustainable future for ethical banking in Australia. His unique mix of experience and expertise has resulted in a compelling book that should be a must-read for anyone with an interest in Australian banking.

ANTHONY THOMSON, FOUNDER, METRO BANK, ATOM BANKAND 86400

It is great to read a book on banking and the failures of this essential part of our economy that is knowledgeable, fact-based and courageous. The book is a well-written mix of history, research, and personal experience at very senior levels of the industry. This is an essential read for all people interested in what went wrong with the banks and what has to change.

KATE CARNELL AO, AUSTRALIAN SMALL BUSINESS OMBUDSMAN

Healy brings refreshing moral clarity to the question of whats gone wrong with Australian banks. His insights lay the foundations for customers and citizens to demand real change.

DR LESLIE CANNOLD, ETHICIST

Joseph Healys depth of experience reveals the skills and judgement required for the banking system to work well for customers and professionals. No amount of regulation will replace the need for a good banker to run a bank.

DAVID MURRAY AO

Courageous, ambitious, practical and hugely insightful. Joseph Healy combines his three decades of experience as a seasoned banker with academic rigour to cut straight to the heart of the most difficult issues. It is a must-read for all bankers, industry leaders, company directors, regulators and especially concerned citizens. The important insights contained in this book will reverberate beyond antipodean shores.

MARK LAWRENCE, FORMER CHIEF RISK OFFICER,ANZ BANKING GROUP

BREAKING THE BANKS

WHAT WENT WRONG WITH AUSTRALIAN BANKING?

JOSEPH HEALY

First published in 2019 by Impact Press

an imprint of Ventura Press

PO Box 780, Edgecliff NSW 2027 Australia

www.venturapress.com.au

Copyright Joseph Healy 2019

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any other information storage retrieval system, without prior permission in writing from the publisher.

ISBN: 978-1-920727-95-6 (paperback)

ISBN: 978-1-920727-94-9 (ebook)

Cover and internal design by Deborah Parry

TO MY FAMILY

CONTENTS

ABOUT THE AUTHOR

J OSEPH HEALY is a 35-year career international banker who has worked for six banks across several markets. He is a co-founder and co-CEO of Judo Bank, a challenger bank focused on the SME market.

Joseph was a director of Football Federation Australia (FFA) from 201018 and he is an Adjunct Professor at the University of Queensland Business School. He is the author of two books: Corporate governance and wealth creation (2003) and Chinese firms going global can they succeed? (2018). Joseph is also a member of the advisory council of World Vision Australia and a member of the Australian Institute of Company Directors.

He holds an MA in Contemporary Chinese Studies, an MBA, an MSc in Finance, an MSc in International Management in China, and a Masters in Banking. As part of his commitment to lifelong learning, Joseph is completing an MSc in Psychology and Neuroscience of Mental Health at the Institute of Psychiatry, Psychology & Neuroscience (IoPPN), Kings College, London.

He is a member of the Chartered Institute of Bankers in Scotland, a Fellow of FINSIA, and holds five international football caps for Scotland at youth level.

LIST OF FIGURES AND TABLES

FIGURES

CHAPTER 1

CHAPTER 2

CHAPTER 4

TABLES

CHAPTER 1

CHAPTER 2

CHAPTER 4

CHAPTER 8

LIST OF ACRONYMS AND ABBREVIATIONS