case the deep dive identified a problem. And, unfortunately, that’s the nature of of – any kind of business like this. There are always problems that you then need to fix. And the resolution that’s referred to here is that there was a referral control implemented which would mean that the a decision would be referred to a credit – assessor, who would then make a manual decision. And then a permanent fix was done in March. I am not sure what the timing was relative to that paper. I think it was October. My question to you my question to you, though, just focused on the fact was there – any analysis done as to whether or not that issue resulted in increased defaults for people who have been approved for an SBO during that period?I couldn’t tell you off the top of my head. Can I Commissioner, if I tender that document. – THE COMMISSIONER: Small business risk subcommittee agenda and accompanying documents, 26 May CBA.0001.0174.1189, exhibit 3.45. ’16, EXHIBIT #3.45 BUSINESS RISK SUBCOMMITTEE AGENDA AND ACCOMPANYING DOCUMENTS DATED 26/05/2016 (CBA.0001.0174.1189) MR DINELLI: Thank you, Commissioner. If I can take you, Mr van to CBA.0001.0332.1047. Now, you’re not party to these emails, but do you know who Christopher Essex is?I do. And what is his role?He is in the credit risk team, one of the credit specialists who after this portfolio. I see. And if you go down the page, there’s an email from a Megan Eldridge. Is she also part of that team?No, it looks like, from the signature, she’s a frontline staff member. I see. And she has there said: Please see attached the two screenshots from the calculator. The first is prior to inputting the expenses and the second after the personal living expenses are added. The net monthly surplus does not change. Do you see that?Yes, I see that. And does that demonstrate that or is that an error in relation to the serviceability – which was the subject of this email?No. I don’t think it was an error. What I think the frontline staff member is saying, well, I put in a number and nothing changed for the net surplus. You would recall from the consumer of hearings
case the deep dive identified a problem. And, unfortunately, that’s the nature of – of any kind of business like this. There are always problems that you then need to fix. And the resolution that’s referred to here is that there was a referral control implemented which would mean that the – a decision would be referred to a credit assessor, who would then make a manual decision. And then a permanent fix was done in March. I am not sure what the timing was relative to that paper. I think it was October. My question to you – my question to you, though, just focused on the fact was there any analysis done as to whether or not that issue resulted in increased defaults for people who have been approved for an SBO during that period?I couldn’t tell you off the top of my head. Can I – Commissioner, if I tender that document. THE COMMISSIONER: Small business risk subcommittee agenda and accompanying documents, 26 May ’16, CBA.0001.0174.1189, exhibit 3.45. EXHIBIT #3.45 BUSINESS RISK SUBCOMMITTEE AGENDA AND ACCOMPANYING DOCUMENTS DATED 26/05/2016 (CBA.0001.0174.1189) MR DINELLI: Thank you, Commissioner. If I can take you, Mr van to CBA.0001.0332.1047. Now, you’re not party to these emails, but do you know who Christopher Essex is?I do. And what is his role?He is in the credit risk team, one of the credit specialists who after this portfolio. I see. And if you go down the page, there’s an email from a Megan Eldridge. Is she also part of that team?No, it looks like, from the signature, she’s a frontline staff member. I see. And she has there said: Please see attached the two screenshots from the calculator. The first is prior to inputting the expenses and the second after the personal living expenses are added. The net monthly surplus does not change. Do you see that?Yes, I see that. And does that demonstrate that – or is that an error in relation to the serviceability which was the subject of this email?No. I don’t think it was an error. What I think the frontline staff member is saying, well, I put in a number and nothing changed for the net surplus. You would recall from the consumer of hearings
transcript-24-may-2018.docx